An aerial view of Phnom Penh showcasing its urban development and high-rise buildings. Post Staff
The Cambodian government has set a national revenue target of 29.05 trillion riel (approximately $7.26 billion) for 2025 to support various expenditures, including public investments aimed at maintaining social stability and promoting economic growth. This target marks a 2.84% decrease from the revenue outlined in the 2024 Budget Law (BL).
The 2025 BL, signed by King Norodom Sihamoni on December 12, states, “Authorised for the 2025 management is the collection of revenue for the national budget from tax revenue, non-tax revenue and other incomes according to budgetary and ministerial frameworks outlined in Table 1 attached to this law.”
According to Table 1 of the 2025 BL, 26 ministries and institutions are responsible for collecting revenue for the national budget, including the Royal Palace, the Office of the Council of Ministers, the State Secretariat of Civil Aviation (SSCA), the Council for the Development of Cambodia (CDC) and the National Bank of Cambodia (NBC).
The 2025 BL specifies that national budget expenditures in 2025 will amount to 35.40 trillion riel (approximately $8.85 billion).
In comparison, the 2024 BL targeted total revenue collection of 29.90 trillion riel (approximately $7.47 billion) and national expenditures of 34.50 trillion riel (approximately $8.62 billion).
Economist Duch Darin told The Post on December 19 that the country’s fiscal performance in 2024 has laid a strong foundation for 2025, showcasing the government’s commitment to prudent financial management and sustainable growth.
He said that steady revenue growth, driven by recovering private consumption and tourism, highlights the economy’s resilience, as gross domestic product (GDP) is projected to grow by 5.3% in 2024. He added that effective budget consolidation has also narrowed the fiscal deficit, reflecting disciplined fiscal policies.
According to Darin, government revenue increased by 4.2% in the first eight months of 2024 compared to the same period in 2023, largely due to a rebound in consumer spending. Taxes on goods and services, a key revenue source, rose by 3.7%, while taxes on international trade grew by 6.4% amid higher imports.
He noted that non-tax revenues, particularly from tourism, surged by 43.7%, fuelled by a recovery in travel activities. On the expenditure side, government spending decreased by 0.3% during the same period.
Darin said that these measures have successfully reduced the fiscal deficit to 1.0% of GDP during the first eight months of 2024, down from 1.6% in the same period in 2023.
“The government’s careful containment of expenditures, combined with strategic investments in critical areas such as social benefits and subnational administration, highlights its focus on fiscal discipline and efficient resource allocation. As these policies continue, Cambodia is well-positioned to maintain macroeconomic and political stability and achieve its development goals in 2025,” he remarked.
Hong Vanak, an economist at the Royal Academy of Cambodia, stated that while the amount collected from taxes in 2025 is expected to decrease slightly compared to 2024, it would not affect government operations or development projects.
“I believe the national government’s revenue forecast for 2025 will decrease slightly because it is implementing tax relief measures for micro, small and medium enterprises (MSMEs), as well as property tax exemptions for some businesses,” he explained.
He added that the government might collect more tax revenue if the updating of business and property types across the country is completed. He noted that increased exports to international markets and growth in foreign tourism are also expected to boost government revenue.
