National Budget 2008 Up to USD 1,400 Millions
Recently National Assembly has just approved the draft national budget law for the fiscal year 2008. The 2008 national budget totaling 1,400 millions US dollars has been endorsed by the National Assembly. It increases by 22 percent as compared to the 2007 national budget (1,200 millions US dollars). This increase was resulted from the impact of the country economic growth (9.5 percent in 2007) and proper management of the national incomes such as income from tax and others non-fiscal income.
As the Cambodia National Strategic Development Plan has mainly focused on poverty reduction and social issue development, the majority of the 2008 national budget has been allocated for Ministry of Agriculture, Forestry and Fishery, Ministry of Rural Development, Ministry of Education, Youth and Sports, Ministry of Health and the two others prioritized ministry, Ministry of Women Affairs and Ministry of Water Management.
This increase has indicated that the Royal Government of Cambodia has put more efforts in the public investment in the aims of poverty reduction, increasing standard of living, economic growth and social harmony. In addition, it has shown to the donors community that, with their technical and financial assistance, Cambodia is on the way to become a developed country.
However, in order to ensure that the budget can be utilized effectively, the government must take immediate action to fight corruption within the government system. To do so, it might need to accelerate the process of finalizing the corruption law and enforce the law.
Reference: Economics Today, Issue 12