Phnom Penh, Cambodia – The Cambodian government has allocated a significant budget of 282.7 billion Riel, equivalent to approximately $70 million, to implement crucial measures aimed at maintaining social stability and enhancing equity among its citizens in 2026. This financial commitment is detailed in the 2026 Summary Budget Book published by the Ministry of Economy and Finance.
Of the total $70 million package, approximately $15 million is specifically earmarked to support performance incentive systems within public administration across various ministries. An additional $7 million has been reserved for programs designed to stimulate consumption and bolster tourism activities, a vital sector for the nation’s economy. Furthermore, the government has set aside around $45 million for key initiatives focused on stabilizing people’s livelihoods and promoting social equity. A further $3 million will be dedicated to social protection programs, specifically designed to assist communities in transitioning out of poverty.
Looking ahead to 2026, Cambodia’s economy is projected to achieve a growth rate of only 5 percent. This forecast comes amidst an environment of increasing internal and external challenges and risks, which are currently threatening the sustainability and continuity of Cambodia’s development trajectory.
Based on its macroeconomic policy framework, the actual evolution of public financial conditions, and in light of heightened uncertainties, the government has meticulously crafted its public financial policy for the medium term. This policy adopts a strategic stance centered on “strengthening budgetary effectiveness to support stability and growth.”
In line with this strategic direction, the Royal Government is primarily focused on continuously enhancing budgetary effectiveness, both at the allocation and operational levels, through ongoing expenditure prioritization. The public expenditure framework has been structured to direct resources towards critical priority areas. These include, but are not limited to, strengthening national sovereignty and territorial integrity, maintaining socio-economic stability and people’s livelihoods, promoting social equity, and continuously supporting the nation’s social development process, while also ensuring the uninterrupted operation of government functions.
According to the Ministry of Economy and Finance, the government anticipates collecting 32,747 billion Riel (approximately over $8 billion) in revenue for 2026, which represents 15.09 percent of the Gross Domestic Product (GDP). Concurrently, total government expenditures are projected to reach 40,913 billion Riel (approximately $10 billion), accounting for 18.85 percent of GDP. This projected expenditure exceeding revenue will result in an overall budget deficit of 3.76 percent of GDP for Cambodia.
