The Ministry of Economy and Finance has issued a directive to tighten Cambodia's national budget for 2024, adhering to financial management laws. The directive mandates significant cuts in discretionary spending across various ministries and public agencies to preserve funds for essential expenditures.

Ministries and public institutions are instructed to eliminate non-essential spending and operations. Restrictions on advancing funds without existing credit approvals have been imposed, with exceptions only granted by the Minister of Economy and Finance or the head of the Royal Government.

The directive suspends investment loans for physical infrastructure projects previously approved for the ministries of Rural Development, Public Works and Transport, Water Resources and Meteorology, and Agriculture, Forestry and Fisheries. These suspensions amount to 87 billion riels in loans.

Additionally, loans designated for expenditure, totaling 896.69 billion riels, are suspended. This includes labor cash programs, vocational training funds, digital infrastructure enhancements, environmental projects, and the construction of a bridge over the Mekong River for the Phnom Penh-Bavet Expressway project. Operations at the Siem Reap Water Supply Authority are also affected.

To further economize, a 15 percent cut in total expenditure loans related to meetings, seminars, and conferences has been announced, promoting the use of digital platforms to reduce costs.

This decision follows a report indicating a shortfall in national revenue for the first quarter of 2024, with projections showing that year-end revenues will likely fall below the targets set in the Financial Law of 2024.

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