The Economic, Finance, Banking and Audit Commission of the National Assembly (NA) and the Ministry of Economy and Finance held a February 2 meeting to review the draft law on the public finance system before the draft is submitted to the NA Standing Committee for review and approval.
Once the draft is approved by the NA Standing Committee, it will then be discussed and approved in an NA plenary session.
Chheang Vun, chairman of the assembly’s economic committee, said that the meeting was an opportunity for NA members to seek further clarification on several points of the proposed law.
Minister Economy and Finance Aun Pornmoniroth said the draft law was designed to create the necessary legal framework for the implementation of a performance-based budgeting system – also known as performance budgeting – a suitable model for Cambodia.
“The government assigned the finance ministry to lead the drafting of this law in 2010. This is a basic law which covers the management of public finances and strengthens the implementation of performance budgeting,” he added.
“This is an important step towards improving accountability. It aims to modernise Cambodia’s public finance management system, in line with the reforms outlined in the Budget System Reform Strategy (2018-2025) of the government. It is also in line with international best practices,” he continued.
After discussion, the meeting agreed on the overall content of the draft. Once the wording and grammar have been verified, it will be passed to the NA’s Standing Committee.
Government spokesman Phay Siphan said the draft law would allow the implementation of performance budgeting, which was the appropriate model for Cambodia.
He added that it would allow budget reliability, financial accountability, clear policy-budget links, and improved accounting practices.
“It will also ensure the efficiency and sustainability of public finance management, while maintaining macroeconomic stability, economic growth and social equity,” he concluded.