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Cambodia reports $6.6M budget surplus in 11 months
The Royal Government of Cambodia has collected 22,302 billion riels or $5.44 billion as the total national revenue in the first 11 months of 2022, while the total national expenditures reached 22,275 billion riels or $5.43 billion, resulting in 27 billion riels or $6.6 million received as the surplus of the national budget, according to a report released by the Ministry of Economy and Finance (MEF).
The government has generated a national revenue 0.26 percent—100.26 percent—higher than the amount set as its target in the annual budget law for 2022 even though the figures for December or the whole year 2022 have not been updated, while the national expenditures have reached 71.62 percent compared to the law, the report said on Wednesday.
The State Budget Implementation for November 2022 shows that the government has generated domestic revenue 25.57 percent higher than the amount it earned in the same period of 2021, of which tax revenue increased by 26.07 percent and non-tax revenue rose by 21.85 percent as the economic activities in Cambodia have recovered.
The report also said that the government released 15,122 billion riels or about $3.67 billion of current expenditures, which decreased by 0.29 percent compared to the same period of 2021, while the capital expenditure fell by 20.51 percent to 7,153 billion riels or $1.74 billion as the budgeted expenditures for 2022 focused on combatting the consequences of the Covid-19 pandemic.
“The Royal Government has carefully and effectively managed and utilised the total financing, which is able to sustain the above implementation in a timely manner,” the report pointed out, adding that the total implementation of foreign financing reached 3,915 billion riels or about $955 million—57.37 percent of the budget law, while the total government deposits amounted to 111 billion riels or approximately $27 million.
The total current expenditures are divided into wages and non-wages. Wage items include personnel charges in civil administration and national defence and security, while the non-wage items include purchases of maintenance supplies, administration supplies, food, agriculture products, clothing, decoration, small tools, material, furniture and equipment.
They also include energy, water, health supplies and equipment and services such as rental and interests on external debt in addition to social benefits and grants, according to the report, adding that the current expenditures cover mostly the social administrative expenses such as information, public health, education, youth, sport, culture, fine arts, environment, social affairs, veteran, public worship, religion, woman affairs, labour and vocational training.
After the social administrative expenses, the government spent on defence and security such as national defence, public security, administration and justice. In addition, the government also spent on the miscellaneous—unallocated expenditures, general and economic administration of ministries and institutions such as the Royal Palace, national assembly and the council of ministers, civil aviation, commerce, mines, agriculture, tourism, etc.
Addressing a groundbreaking ceremony for the construction of Kratie Bridge Across Mekong River from Chetr Borei to Preak Prasab district of the province on Monday, Prime Minister Hun Sen said the actual result showed that the revenue from both sources exclusive of non-tax revenues, which enabled Cambodia to re-gain the surplus in its current account in the year.
“Now, the economy is recovering … it can be said that Cambodia has returned to its surplus of the current budget after the pandemic during which our spending was greater than revenue as at that time the revenue was falling, but the spending was increasing and I expected that in the new year, we will be able to achieve more surplus of the current budget,” said Mr Hun Sen.
The Premier said that he had expected that the revenue from both taxation and customs would grow by 125 percent in August last year, but the actual result showed that the revenue from both sources grew by 127 percent exclusive of non-tax revenues, which enabled Cambodia to re-gain the surplus in its current account in the year.
Source: https://www.khmertimeskh.com/501214805/cambodia-reports-6-6m-budget-surplus-in-11-months/