Phnom Penh, Cambodia – During a plenary session led by Prime Minister Hun Manet on October 24, the Council of Ministers officially approved the Draft Law on Financial Management for 2026. This significant legislative act outlines the Royal Government’s plan to allocate a total state budget of 40,913 billion Riel, approximately $10.18 billion USD, for the upcoming fiscal year.
This proposed expenditure represents 18.85% of the projected Gross Domestic Product (GDP) and marks a substantial increase of 7.8% compared to the financial law for 2025. The Draft Law on Financial Management for 2026 comprises six chapters and fifteen articles, meticulously designed to bolster national defense capabilities, safeguard territorial integrity, and ensure the ongoing operational sustainability of state institutions.
Furthermore, the budget is structured to support the implementation of crucial policy priorities and various key reform measures scheduled for continuous execution throughout 2026. Specifically, it is crafted to facilitate the continued advancement of the six priority policy programs, five key measures, and five core priorities as outlined in the Pentagonal Strategy – Phase I. This strategic alignment aims to address Cambodia’s developmental objectives in a new era, both domestically and within regional and global contexts.
According to an official press release detailing the outcomes of the Council of Ministers’ plenary meeting, the planned state expenditure underscores the government’s commitment to robust economic management and strategic investment. Economic forecasts indicate that Cambodia’s economy is projected to achieve a growth rate of around 5.2% in 2025, settling at approximately 5% in 2026. Concurrently, the per capita GDP is anticipated to rise to $3,020 USD in 2026, an increase from an estimated $2,858 USD in 2025.
The economic growth predicted for 2026 is expected to be driven by key sectors and sub-sectors. These include a robust industrial sector, a dynamic services sector, and a resilient agricultural sector, with particular support from the fisheries and livestock sub-sectors. The average annual inflation rate is forecast to remain stable, projected to be around 2.8%.
