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The government approved a draft budget of 40.9 trillion riel ($10.2 billion) for 2026, increasing over 7% from $9.3 billion in 2025, however, no breakdown of the allocation was offered.
The budget, passed during the cabinet meeting chaired by the Prime Minister Hun Manet on Friday, was equivalent to 18.9% of gross domestic product (GDP)— 7.8% more compared to the 2025 Finance Law.
“It prioritizes the strengthening of capacity to protect national sovereignty and territorial integrity, including the sustainability of state institutions,” according to a statement from the government spokesperson.
Cambodia’s economy is projected to grow at 5.2% in 2025 and around 5.0% in 2026, with 2.8% inflation expected, it said, adding that GDP per capita is predicted to rise to $3,020 from $2,858 in 2025.
The growth next year would be supported by industrial, services, and agricultural sectors. The agricultural sector continues to be driven by the fisheries and animal husbandry sub-sectors.
The 2025 budget saw increased expenditure with additional allocation for the National Defense Ministry at $739 million, as well as the Interior Ministry. But six ministries in the public services sector saw cuts—the Health Ministry experiencing the largest at nearly $140 million. Funding for the Ministry of Environment was also slashed by about $8 million.
Soeung Saroeun, executive director of NGO Forum, said the draft budget prioritizes economic development, particularly infrastructure, to support Cambodia’s graduation from least developed country status by 2030. The government is also strengthening healthcare, social protection, and education systems.
He welcomed improvements in sub-national budgets but urged the government to allocate more funds to local administrative levels, especially remote and border communes facing daily livelihood challenges.
Meanwhile, he voiced concern about how the government would raise funds to cover expenditure, asking whether it will rely on more borrowing.
“The rising expenditure [in the 2026 draft budget] questions whether there will be increased borrowing [foreign loans] or tax collection,” Saroeun said.
He pointed out that tax collection on items like cigarettes, beverages and alcohol, would be beneficial to the public as it protects public health.
The draft budget bill for 2026 will be adopted by the National Assembly before its final review by the Senate.
Government spokesperson Pen Bona declined to elaborate on allocations for line ministries, instead referring CamboJA News to the statement.
