Prime Minister Hun Manet addresses the closing of the review meeting of public financial management on February 14. STPM
Prime Minister Hun Manet stated that over the past 20 years, Cambodia has transformed its budget system into a comprehensive and trusted system, achieved through the implementation of public financial management reform programmes at both national and sub-national levels.
In a February 14 meeting held to review the initiative’s fourth phase, Manet highlighted that the two-decade span from 2004 to 2024 has seen historical accomplishments for the country, including enhancements in monetary governance and considerable socio-economic progress.
The premier emphasised the government’s ongoing commitment to the programmes, prioritising them in its policy agenda.
“We had begun to make the reforms during difficult circumstances. We didn’t wait until we gained peace across the country,” he said.
“On the contrary, by placing the nation’s and people’s best interests at the forefront, we initiated reforms of our priority policies. These were in accordance with the context and circumstances of each era following the fall of the [Khmer Rouge] genocidal regime,” he added.
Manet explained that peace and national independence have paved the way for Cambodia to refine and establish governance systems, underpinned by systematic reform planning and long-term visions.
“In the first five years of the first phase of the reform, we built budget credibility. We made the national budget gain trust, assessed by all relevant stakeholders, including the public, civil servants and national and international financial institutions,” he said.
He also noted the evolution of national and sub-national budget management towards IT-based administration.
Minister of Economy and Finance Aun Pornmoniroth explained that the reform programmes were segmented into four phases.
He said the first phase aimed at building budget trust, the second at enhancing financial accountability, the third linked the budget to policy and the fourth focused on establishing accountability for achieved work.
“We set a vision and strategy that reflects the government’s ambition and determination to transform Cambodia’s public financial system. The transformation aims to meet Cambodia’s fiscal needs while ensuring effectiveness and efficiency, aligning with international best practices,” he added.
The minister noted that the Covid-19 pandemic had posed challenges to revenue collection efforts. Nevertheless, he said there was a resurgence in the collection of both tax and non-tax revenues following the pandemic.
“From 2013 to 2023, the trend in spending exhibited a positive trajectory, indicative of the gradual effectiveness of measures implemented to enhance budget execution,” he stated.
EU ambassador to Cambodia Igor Driesmans said that the meeting reflected the positivity of its partners, both historically and looking forward, emphasising that the process is ongoing.
“We can gauge the success of public financial reforms, with the backing of our development partners in recent years, by the effective and consistent implementation of policies, particularly in the health and education sectors,” he stated.
“The enhancement in domestic tax revenue collection has empowered the government to sustain its support and response to infectious diseases and social protection. Nevertheless, there is a need for additional efforts in delivering services for key sectors like education, social protection, health and agriculture,” he added.
Driesmans urged the government to devise a systematic and clear roadmap utilising the financial information system.
He stressed that this approach would aid in refining the public financial management system, ensuring accountability, transparency and alignment with the Cambodia Digital Economy and Society Policy Framework.
