Cambodia cabinet approves $3.5b draft budget

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Hun SenThe new cabinet of Cambodia on October 25 approved a draft budget of $3.5 billion for 2014, which is a 13 per cent increase over the 2013 budget, according to a report in The Cambodia Daily.

However, the Council of Ministers, which announced the approval of the draft budget, offered no details on how the budget would be divided or how the government planned to pay for the increase. Council spokesman Phay Siphan said that he had no information about the budget breakdown or projected revenues.

It is understood that the 13 per cent hike in government spending was needed to cope with the damage in­flicted by this year’s flooding.

The opposition has faulted past budgets for allocating too much money to security spending at the expense of health, education and rural development, and for taking on too much foreign debt. Of the $3.1 billion approved for 2013, some $400 million – about 13 per cent of the total budget and 17 per cent more than the year before – went to defense and security. Education and health received $280 million and $225 million, respectively.

In a joint report that same year, the World Bank and International Monetary Fund (IMF) said Cambodia had sustainable debt but warned that continuing to raise its level of borrowing could hurt the country’s ability to weather future economic crises.

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Reading Time: 1 minute

The new cabinet of Cambodia on October 25 approved a draft budget of $3.5 billion for 2014, which is a 13 per cent increase over the 2013 budget, according to a report in The Cambodia Daily.

Reading Time: 1 minute

Hun SenThe new cabinet of Cambodia on October 25 approved a draft budget of $3.5 billion for 2014, which is a 13 per cent increase over the 2013 budget, according to a report in The Cambodia Daily.

However, the Council of Ministers, which announced the approval of the draft budget, offered no details on how the budget would be divided or how the government planned to pay for the increase. Council spokesman Phay Siphan said that he had no information about the budget breakdown or projected revenues.

It is understood that the 13 per cent hike in government spending was needed to cope with the damage in­flicted by this year’s flooding.

The opposition has faulted past budgets for allocating too much money to security spending at the expense of health, education and rural development, and for taking on too much foreign debt. Of the $3.1 billion approved for 2013, some $400 million – about 13 per cent of the total budget and 17 per cent more than the year before – went to defense and security. Education and health received $280 million and $225 million, respectively.

In a joint report that same year, the World Bank and International Monetary Fund (IMF) said Cambodia had sustainable debt but warned that continuing to raise its level of borrowing could hurt the country’s ability to weather future economic crises.

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