October 27, 2025
PHNOM PENH – The Cambodian government plans to spend around $10 billion in 2026, marking an increase of nearly 8% over to the National Budget Law 2025.
This information was revealed in a press release which detailed the outcome of an October 24 cabinet meeting, chaired by Prime Minister Hun Manet.
According to the press release, the draft law on financial management in 2026 consists of six chapters and fifteen articles. A priority was placed on strengthening national sovereignty and territorial integrity, ensuring the continuity of government institutions’ operations, supporting the implementation of major policy priorities, and continuing key and practical reform measures.
In particular, the law supports the continuation of the six priority policy programs, five key reform measures, and five core priorities outlined in phase one of the seventh-mandate government’s Pentagonal Strategy, which corresponds with Cambodia’s development direction in the new era, both domestically and in regional and global contexts.
“The Royal Government plans to spend 40,913 billion riel (about $10.1 billion), equivalent to 18.85 percent of gross domestic product (GDP), representing an increase of 7.8 per cent compared to the 2025 Financial Management Law,” explained the release.
“According to projections, Cambodia’s economy is expected to achieve growth of around 5.2% in 2025 and approximately 5.0% in 2026, while GDP per capita is forecast to rise to $3,020, compared with about $2,858 in 2025. The 2026 economic growth will be driven by key sectors and sub-sectors, including 1) industry, 2) services, and 3) agriculture, which continue to be supported by the fisheries and livestock sub-sectors. The average annual inflation rate is projected to remain around 2.8%,” it added.
The National Budget Law 2025 allocated 37,951 billion riel (18.14% of GDP) in government spending, compared to 37,110 billion riel (25.96% of GDP) in 2024, 39,206 billion riel (29.87% of GDP) in 2023, 34,708 billion riel (27.95% of GDP) in 2022 and 32,009 billion riel (27.14% of GDP) in 2021.