Phnom Penh , Oct. 26 – The Royal Government of Cambodia has set a target of about US$6.7 billion for expenditure in 2019, an increase of 11.4% compared to 2018, according to summary of Ministry of Economy and Finance's draft budget law 2019 which Fresh News received on Friday.
According to the draft, state revenues is expected to be US$5.2 billion, an equivalent to 19.2% of GDP, increased by 14% compared to 2018, whereas the expenditure is US$6.7 billion, an equivalent to 24.7% of GDP. It is estimated that the current surplus could be maintained at about 2.81% of GDP in 2019 with budget deficit of -5.4% of GDP in line with the fiscal consolidation policy.
The draft added that the deficit will be filled in by 4.8% of the GDP of the external financing; 0.23% of GDP of the supporting fund; and 0.37% of the government deposits, an equivalent to US$100 million, which will also be used to support the establishment of the state-owned SMEs Banks.
Cambodia Owes $6.7B Debt by 2018, to Borrow $1.4B SDR for 2019
As of September 2018, Cambodia owes $6.8 billion foreign debt and that Cambodia will borrow $1.4 billion SDR for 2019, according to the summary of Ministry of Economy and Finance's draft budget law 2019 which Fresh News received on Friday.
According to Cambodian public debt management, the government adheres to four key principles including: (1) borrow under control of budget and economy, (2) borrow under high preferential terms, (3) borrow for priority sectors to support economic development, and (4) borrow with transparency, accountability and efficiency.
The Ministry of Economy and Finance set to borrow $1.4B SDR from development partners based on: (1) the increased needs for development; (2) high priority public investment projects including infrastructure and productivity growth; (3) borrow under high preferential terms; (4) public debt situation is "sustainable" and "low risk”, and (5) effective debt management and implementation.
According to the ministry, Cambodia borrow to support medium and long-term sustainable economic growth, and promote competitiveness and economic productivity on energy sector, irrigation, and physical infrastructure.
On energy: build 500kv transmission line as a backbone for national and sub-national grids; expand rural electricity transmission line – Phase VII; and build 115kv transmission line from Tbong Khmum-Prey Veng; develop solar power to decrease electricity price for users and decrease input fee for agriculture and industry sectors.
On irrigation: renovate agricultural irrigation, Prek Stung Keo Water Resources Development Project in Kampot – Phase II.
On physical infrastructure: develop road from Somlot, Veal Veng to Koh Kong, national road 71 (Tbong Khmum, Kroch Chmar, Chomka Ler), national road 60 of 116 km in length, Mekong-Kratie bridge, Stung Bot international border gate, and connecting road of national road 5 – Phase II.
Other small projects will include agriculture, health, clean water, finance, vocational training, and education.
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