Phnom Penh (FN), Feb. 13 – According to the 2025 Budget Law, the Royal Government plans to collect 26,418 billion riels in fiscal revenue (taxes and customs duties), equivalent to approximately USD 6.5 billion, to support government expenditures.

The Budget Law further outlines that the Royal Government aims to generate 31,598 billion riels in total national revenue, approximately USD 7.8 billion, accounting for 15.11 per cent of GDP. This includes 26,418 billion riels in fiscal revenue (USD 6.5 billion), 3,971 billion riels in non-tax revenue (nearly USD 1 billion), and 1,209 billion riels in other revenue (over USD 300 million).

Speaking at the Forum on Macroeconomic Management and the 2025 Budget Law on 10 February 2025, Hav Ratanak, Royal Government Delegate and Director General of the General Department of Budget at Cambodia’s Ministry of Economy and Finance, stated that the revenue collection target for 2025 is 2.8 per cent lower than the 2024 Budget Law, a reduction of over USD 224 million.

He explained that this decrease is due to a continued decline in tax revenue collection, despite economic growth. He noted that key revenue-generating sectors have yet to recover to the expected levels.

Meanwhile, the Royal Government plans to allocate approximately 37,951 billion riels, or more than USD 9 billion, in expenditure for 2025, equivalent to 18.14 per cent of GDP.

Regarding the fiscal balance, Ratanak stated that the national budget deficit for 2025 will be maintained at 6,352 billion riels, or approximately USD 1.5 billion, equivalent to -3.04 per cent of GDP. This is comparable to the 2024 deficit, which stood at 2.97 per cent of GDP.

He further noted that maintaining the budget deficit at -3.04 per cent of GDP aligns with international financial standards, as a deficit of -3 per cent is considered a reasonable target. He highlighted that Cambodia’s budget deficit rose significantly during the COVID19 pandemic due to increased government spending.

In 2024, Cambodia initially projected a budget deficit of -2.4 per cent of GDP; however, actual implementation reached 2.97 per cent.

Hav Ratanak added that, to sustain the 3.04 per cent deficit target in 2025, Cambodia will require additional financing amounting to 4.2 per cent of GDP, equivalent to approximately 8,780,452 million riels (USD 2.158 billion), to cover the deficit and repay both domestic and foreign loans.
=FRESH NEWS