Overview Of The Cambodia Government Budget For 2025
The Cambodian National Assembly has approved the Draft Budget Law for 2025, with expenses totalling USD 9.32 billion (KHR 37.95 trillion). This amount represents over 18 per cent of the GDP and marks a 2.3 per cent increase from 2024’s USD 9.1 billion. To cover the new expenses, the government says it will issue bonds and seek additional financing through Special Drawing Rights loans.
The Ministry of National Defense leads in funding, while the Ministry of Health faces cuts.In terms of government loans, new funding will go to energy development, and increasing water supply capacity in both Phnom Penh and Siem Reap.
Additional loans are slated for state-owned banks, such as the Agricultural and Rural Development Bank and the SMEs Bank of Cambodia, to support development in northeastern provinces.
National Level (Cambodia Ministries & Provincial Departments)
According to the draft budget law for 2025, the ministries and institutions with the highest expenditures are in the economic sectors (USD 1.958 billion), followed by Social Affairs (USD 1.884 billion), and National Defense, Security, and Public Order (USD 1.413 billion).
Meanwhile, Unspecified Expenses will total approximately USD 2.1 billion, General Administration accounts for USD 828 million, and Unplanned Expenses amount to USD 408 million.
Sub-National Level (Capital & Provincial Cities, Districts, Communes)
At the sub-national level, expenses totalling USD 1.78 billion (7.193 trillion riel) will be allocated as follows:
- Capital and Provincial Cities: 3.55 trillion riel (USD 866.7 million), which is divided into:
- Capital & Provincial Administrations: 2.627 trillion riels (USD 651 million)
- Provincial Department of Health: 926.5 billion riels (USD 229.6 million)
- Krong/District: 2.34 trillion riels (USD 571 million)
- Commune/Sangkat: 1.29 trillion riels (USD 316.8 million)
Under the provincial administration, Phnom Penh has the highest expenses in 2025, totaling USD 235 million, followed by Kandal (USD 39.2 million), Prey Veng (USD 27.3 million), Siem Reap (USD 26.9 million), and Sihanoukville (USD 23.1 million).
The smallest expenses for provinces are recorded in Stung Treng (USD 8.6 million), Kep (USD 6.7 million), and Pailin (USD 5.9 million).
National Level Expenditures By Sectors/Ministry 2025
The budget allocates USD 1.884 billion for Social Affairs, USD 1.96 billion for the economic sector, and USD 1.437 billion for defence and security.
- General Administration: USD 828 million (3.395 trillion riel)
Includes Royal Palace, Senate, National Assembly, Constitutional Council, the Council of Ministers, the Council for the Development of Cambodia, Ministry of Inspection, Ministry of Foreign Affairs and International Cooperation, Ministry of Economic & Finance, Ministry of Planning, Ministry Land, Urban Planning and Construction, National Election Committee, National Audit Authority, Anti-Corruption Unit, Ministry of Civil Services. - National Defense, Security, and Public Order: USD 1.413 billion (5.792 trillion riel)
Includes Ministry of National Defense, Ministry of Interior, Ministry of Justice, State Secretariat of Border Affairs. - Social Affairs: USD 1.884 billion (7.728 trillion riel)
Includes Ministry of Information, Ministry of Health, Ministry of Education, Youth & Sport, Ministry of Culture & Fine Arts, Ministry of Environment, Ministry of Social Affairs, Veterans and Youth Rehabilitation, Ministry of Religion & Cult, Ministry of Women Affairs, Ministry of Labor & Vocational Training. - Economic Sectors: USD 1.958 billion (8.037 trillion riel)
Includes Secretariat of Civil Aviation, Ministry of Mines and Energy, Ministry of Commerce, Ministry of Agriculture, Forestry and Fishery, Ministry of Rural Development, Ministry of Post and Telecommunications, Ministry of Public Works & Transport, Ministry of Tourism, Ministry of Water Resources & Meteorology, Ministry of Science, Technology and Innovation. - Unspecified Expenses: USD 2.1 billion (8.77 trillion riel)
Includes current expenditures in project implementation, subsidies for capitals, cities, provinces, districts, communes, delegation of education and health functions, direct investment projects, investment contributions, and budget support funds. - Unplanned Expenses: USD 408 million (1.67 trillion riel)
Key Cambodian Ministries Receiving The Most Funding In 2025
Leading the expenses in the budget draft for 2025 are the Ministry of National Defense with USD 735 million (2.964 trillion riel), followed by the Ministry of Public Works and Transport at USD 650.7 million (2.664 trillion riel), and the Ministry of Interior at USD 637 million (2.418 trillion riel).
Other significant expenses include:
- Ministry of Social Affairs: USD 565 million (2.316 trillion riel)
- Ministry of Education: USD 548 million (2.243 trillion riel)
- Ministry of Health: USD 315 million (1.295 trillion riel)
- Ministry of Rural Development: USD 341.5 million (1.398 trillion riel)
- Ministry of Water Resources and Meteorology: USD 327.4 million (1.341 trillion riel)
Subsidies For Public Administrative Institutions
The Royal Cambodian Government will also support the Techo Startup Center with 6,068 million riel (USD 1.48 million), the National Social Assistance Fund with 24,193 million riel (USD 5.9 million), the Cambodia Academy of Digital Technology with 10,984.8 million riel (USD 2.68 million), and the National Polytechnic Institute of Cambodia (NPIC) with 11,419.5 million riel (approximately USD 2.78 million).
Government Loans For Energy, Water Supply and Cambodian Northeastern Provinces Development
The budget law also shows that the government is providing loans to various state-owned enterprises as below:
- Electricity Authority of Cambodia (EDC) - 203,450 million riel (USD 49.5 million USD) for development of energy sectors.
- Phnom Penh Water Supply Authority - 203,450 million riel (USD 49.5 million) for expanding clean water supply capacity in Phnom Penh.
- Siem Reap Water Supply Authority - 61,500 million riel (USD 15 million) for expanding clean water supply capacity in Siem Reap.
- Agricultural and Rural Development Bank (ARDB) & SME Bank of Cambodia - 122,070 million riel ( USD 29.8 million) for financing investment projects in Cambodia's northeastern region.
Government Staff In 2025
At the national level, management staff in 2025 including civil servants and contract officials, are expected to total 158,411. At the sub-national level, the number of council members, civil servants, contract officials, village officials, and government staff is limited to 190,022.
Borrowing For 2025 Expenses
The budget notes that Cambodia will look to borrow 2 billion SDR (Special Drawing Rights), which is equivalent to approximately USD 2.6 billion, from various development partners and issue bonds valued at USD 125 million (KHR 500 billion) to finance investments and maintain balance in the national budget.
Cambodia Economic Forecast 2025
In a mid-year report for 2024, the Cambodian government reported lower tax revenue from both customs and interior taxes, and in Q1 2024, the government's budget revenue decreased, leading to a budget cut of USD 325 million for specific expenditures.
However, according to the Cambodian government's assessment of the medium-term public financial framework, the economy is projected to grow at a rate of 6.3 per cent in 2025, bringing the GDP to over 209.1 trillion riel, or around USD 51.3 billion, with per capita income expected to reach USD 2,924.
A similar figure was forecasted by the Asian Development Bank, which expects Cambodia’s economy to grow at 5.8 per cent in 2024 and 6.0 per cent in 2025. In the medium term, the government forecasts that the Kingdom’s economic growth will stabilise at 6.5 per cent between 2025 and 2027.