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Cambodia: Covid-19 continues to hurt economy, says MEF
Cambodia’s economy is projected to grow by 5.4 percent, according to the mid-year assessment of the Ministry of Economy and Finance (MEF), but down from the previous forecast of 5.6 percent made at the beginning of the year, as the effects of Covid-19 have not fully mitigated.
At a press conference yesterday, MEF spokesperson Meas Soksensan said, “The war between Russia and Ukraine is creating issues such as hight inflation due to the rising prices of oil and food items. The MEF will continue to monitor and evaluate the situation and put in place intervention measures in a timely manner.”
Therefore, he said, the 2022 budget can still be considered as an effective policy tool of the government to maintain economic stability and people’s livelihood against the impact of Covid-19, besides giving a roadmap for economic recovery.
At the same time, the budget underscores the government’s commitment to increasing the efficiency and level of revenue collection through the implementation of strict measures.
Meanwhile, Soksensan highlighted that Cambodia’s public debt stands at $9.81 billion, with 68 percent of it coming from bilateral developing partners (DPs) and 32 percent from multilateral DPs.
“Our total external debt stands between 33 percent and 35 percent of the GDP, which is still lower than the threshold of 40 percent,” he said.
According to him, the MEF will continue its efforts to revitalize the economy through the implementation of the ‘Strategic Framework and Program to Restore and Promote Cambodia’s Economic Growth’ as part of living in a new normal way with Covid-19 policy.
Secondly, as part of the Public Financial Reform, MEF is preparing for the next step of ‘Accountability for Achievement’ by formulating a framework.
Thirdly, MEF will continue to take measures to strengthen the management of state assets and non-tax revenue and modernize the system of non-tax revenue collection by accelerating the establishment of non-tax revenue management system and inventory management system using information technology.
The fourth aspect focuses on Public Debt Management. After the successful implementation of the Public Debt Management Strategy 2015-2018 by the government, the country continues to have a sustainable and low-risk debt.
Lastly, under the 5th Rectangular Strategy, the government will streamline the public revenue management and step up tax revenue collection.
Source: https://www.khmertimeskh.com/501124225/covid-19-continues-to-hurt-economy-says-mef/