Cambodia’s National Assembly approved the 2025 budget on November 27, raising overall spending with boosts to defense, the Interior Ministry, and some public service sectors like Water Resources, while trimming funds for others. However, civil society members have expressed concern about the cuts to the health and environment ministries.
The 2025 budget is set at $9.32 billion (37,950 billion riels), over 18 percent of 2024 GDP and up 2.3 percent from last year’s $9.1 billion, according to the Ministry of Economy and Finance.
Twenty-three ministries will see budget hikes next year. The Ministry of Water Resources leads with an $85.68 million boost, followed by Education with over $61 million, and Interior with more than $40 million – the biggest gains.
The Ministry of National Defense is set to receive the largest allocation of state funds among all ministries, totaling nearly $739 million.
Meanwhile, six ministries in the public services sector saw cuts, with the Ministry of Health taking the largest hit of nearly $140 million. Funding for the Ministry of Environment will be slashed by about $8 million.
Finance Minister Aun Pornmoniroth told a plenary session on Wednesday the new budget aims to “advance key policy actions” and implement reforms tailored to Cambodia’s “evolving domestic and global landscape.” He said it seeks to maximize progress toward the Hun Manet administration’s new “Pentagonal” development strategy.
“People are recognized as the top priority, followed by roads and technology, which are interconnected and sequentially significant,” the minister said.
Soeung Saroeun, the executive director for the NGO Forum, welcomed the increased spending on education and social services, calling it crucial for building human capital – a foundation for sustainable development. However, he flagged concerns over cuts to the Health Ministry’s budget.
“In a health situation where citizens are facing challenges from both communicable and non-communicable diseases, the government budget for the sector should also be increased,” he said.
Saroeun also stressed that the national budget should support microeconomic development, particularly by reducing costs and increasing household income for Cambodians.
Pech Pisey, the executive director of Transparency International, a global organization fighting corruption and promoting transparency, praised the financial strategy for boosting human capital and expanding technical and vocational training.
However, Pisey expressed concern over military spending and limited funds for Cambodian health.
Regarding the expansion in military spending, Pisey stated it should not be prioritized because state revenue is still low.
“Cambodia should maintain military spending at a level sufficient to cover current expenses and reduce weapon purchases,” he said. “The government should redirect the budget from defense to other sectors that can help build the economy, particularly education, and improve the scope and quality of the health sector.”
Khvay Atitya, spokesperson for the Ministry of Environment, could not confirm the reason for the budget cut but stressed the ministry is still equipped to conserve and protect natural resources.
Spokespersons for the Health and Education Ministries, Koy Vanny and Khuon Vicheka, could not be reached for comment.
Neither Maly Socheata, spokesperson for the Ministry of National Defense, nor Touch Sokhak, spokesperson for the Ministry of Interior, responded to requests for comment.
(Additional reporting by Pou Soreachny)
