Cambodia’s draft budget for 2027 would raise spending on defense, security and public order by nearly 14%, to $1.61 billion, according to the draft posted Thursday by the Ministry of Economy and Finance.
That is more than four times the 3.2% increase in overall national spending planned for next year, and it comes as tensions with Thailand simmer after deadly border fighting last year.
At the same time, the draft would cut a combined $270 million from at least seven ministries, including agriculture, rural development, and public works and transport. The budget for the ministry that oversees energy development and investment would rise by more than two-thirds.
The Council of Ministers approved the draft on Oct. 23. It now goes to the National Assembly and then the Senate, both dominated by Prime Minister Hun Manet’s long-ruling Cambodian People’s Party, before the king signs it into law.
The draft sets national spending at 39.7 trillion riels ($9.8 billion), up from 38.5 trillion riels ($9.5 billion) in this year’s budget law. The government projected revenue at 32.3 trillion riels ($8 billion), up 6.7%.
According to the draft, 6.541 trillion riels is allocated to defense, security and public order, up from 5.74 trillion riel ($1.41 billion) this year.
The Ministry of National Defense would receive $851 million, up about 15%, and the Ministry of Interior would get $126 million, up $20 million.
Spending on health and education would rise more modestly. The Ministry of Health’s budget would grow about 1%, $451 million, while spending on the Ministry of Education, Youth and Sport would rise about 5%, to $677 million.
The deepest cuts would fall on rural development and infrastructure. The Ministry of Rural Development’s budget would drop about 32%, $209 million, and the Ministry of Public Works and Transport’s about 15%, $665.7 million.
The Ministry of Agriculture, Forestry and Fisheries would lose about 15%, falling to $169 million, as Cambodian farmers struggle with a prolonged El Niño and high fertilizer costs. Smaller cuts would hit the environment, commerce, labor and tourism ministries.
Two exceptions are the Ministry of Mines and Energy, whose budget would jump about 71%, $244 million, and the Ministry of Water Resources and Meteorology whose budget would rise to $312 million.
Meas Soksensan, a spokesperson for the Ministry of Economy and Finance, said the increase in security spending is “based on an assessment of the socio-economic situation and national priority needs” and aims to strengthen the country’s capacity to protect its sovereignty, territorial integrity, national security and public safety.
“This budget increase also responds to the essential need to reinforce human resources, technical equipment, infrastructure and operational capacity in accordance with actual requirements and the government’s priorities,” he said.
He said higher spending on social affairs reflects the government’s “continued commitment to promoting public welfare, strengthening the social protection system and assisting vulnerable people.” The Ministry of Social Affairs, Veterans and Youth Rehabilitation would receive $677 million up from $623 million.
Ministry of National Defense spokesperson Maly Socheata did not respond to a request for comment. Government spokesperson Pen Bona declined to comment and referred questions to the Council of Ministers’ statement on the budget. Ministry of Interior spokesperson Touch Sokha could not be reached, and the agriculture ministry did not respond to a request for comment.
Lam Socheat, executive director of the Advocacy and Policy Institute and a member of the Budget Working Group, said the higher spending on national defense and the Ministry of Interior reflects border tensions with Thailand and efforts to fight cybercrime and transnational online scams.
“Cambodia is facing increasingly severe challenges related to cybercrime, illegal trafficking networks, including scam operations,” he said.
But he said many Cambodian families still face serious problems, including high household debt, unequal access to quality health care, learning loss, poor-quality education, youth unemployment, climate change and rural poverty.
“If security spending increases to a point where it crowds out resources that should be invested in socio-economic development while Cambodian families continue to face these severe challenges, it will pose a risk to long-term human resource development,” Socheat said.
