Phnom Penh (FN), Feb. 14 – Cambodian Prime Minister Hun Manet highlighted five significant achievements of the Public Financial Management Reform (2004-2024).

The premier spoke on Wednesday (Feb. 14) during the 2023 annual meeting of the Public Financial Management Reform Program-Stage 4 at Sokha Phnom Penh Hotel.

The five major achievements are as follows:

1. Budget Credibility. Over the first five years of implementing the initial stage of the reform program, significant strides have been made in enhancing national budget credibility. These efforts have garnered high praise from stakeholders, citizens, civil servants, and national and international financial institutions. Key initiatives include enhancing institutions, modernizing tax administration, reforming revenue forecasts and cost estimates, promoting budget transparency and planning, improving the accounting and reporting systems, and strengthening cash management. These components have contributed to increasing revenue management, improving cost efficiency, and bolstering overall financial management.

2. Building a Modern Budget System. Over the past two decades, Cambodia has progressed from a deficient to a comprehensive budget system, aligning with international practices. This progression involved transitioning from establishing budget credibility to enhancing financial accountability and ultimately achieving the essential components of linking the budget to policy. This journey has led to the implementation of targeted program budgets, decentralizing budget management, and focusing on results and achievements. Moreover, the adoption of the Financial Management Information System (FMIS) has facilitated digital budget management, resulting in improved efficiency and effectiveness across national and sub-national budgets.

3. Adoption of Achievement-Based Budgeting. The Royal Government is prepared to adopt the achievement-based budget system as the ultimate goal of the Public Financial Management Reform Program-Stage 4 (2023-2027). This system emphasizes performance accountability, holding responsible parties accountable for achieving final results.

4. Achieving Strong, Resilient, and Sustainable Economic Growth. Since 2004, Cambodia has sustained robust economic growth averaging around 7% annually, coupled with low inflation rates and stable exchange rates, except during the COVID19 outbreak. Despite global challenges, Cambodia's economy has demonstrated resilience and stability.

5. Strengthening National Independence and Sovereignty. The achievements of the Public Financial Management Reform Program have bolstered Cambodia's national independence and sovereignty by reducing dependence on foreign borrowing. Currently, annual foreign borrowing accounts for less than 20% of the total national budget, compared to about two-thirds reliance on resources and financial assistance from abroad over the past 30 years. This shift reflects Cambodia's increasing self-reliance and ownership of its national destiny.
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