Senate unanimously approves $7.62 billion for 2021 national budget
CCIFC officials led by its president Soreasmey Ke Bin (left) work out plans to promote French investments in Cambodia. CCIFC
The Senate unanimously approved $7.62 billion for the draft law on next year’s national budget, a half-billion reduction compared to this year’s, amid the challenges to the national economy as a result of the COVID-19 pandemic.
The draft law, which consists of six chapters and 15 articles, was approved by the National Assembly on November 25 after the Office of Council of Ministers on October 23.
According to the Senate’s secretary-general Oum Sarith, all 57 senators who attended the plenary session, which was presided over by Senate president Say Chhum yesterday, support the draft law without making any changes and it has been passed on to the final phase before becoming legislation.
“The 2021 budget is the money to fight to protect the lives of the people and maintain socio-economic balance,” he said, adding that the budget will help restore and stimulate economic growth after the COVID-19 crisis.
He added that the law will also ensure the health, peace, social stability and sustainability of Cambodia’s economic growth and competitiveness with the continued improvement of the well-being of the people.
The cabinet meeting chaired by Prime Minister Hun Sen in October approved a draft annual budget of approximately $7.62 billion for next year.
The 2021 draft annual budget follows on from the 2020 annual budget which was more than $8.2 billion, a seven percent year-on-year drop. The $7.62 billion comprises more than $4.36 billion for current expenditures and $3.26 billion for capital expenditure.
Out of the $7.62 billion total budget, $493.04 million will be allocated for general administration costs while the national defence gets $641.46 million and the Interior Ministry and public security more than $425.46 million. The rest will be spent on social welfare, economic development, emergency relief, unexpected costs and reimbursements for foreign debt, among others.
CPP senator Sok Eysan said yesterday that the 2021 draft budget was made amid Cambodia and the world facing the COVD-19 crisis. He and other senators fully supported the draft law.
Eysan, who also heads the Commission on Interior, National Defence, National Assembly-Senate Relations and Inspection and Civil Service Administration, said the recent floods in Cambodia had also negatively impacted the country’s economic growth.
“Cambodia’s efforts to maintain seven percent annual economic growth as well as reduce poverty have not been successful this year due to COVID-19 and natural disasters,” Eysan said. “I support an initiative to restore Cambodia’s economy.”
Asian Development Bank (ADB) earlier this month adjusted its medium-term outlook for Cambodia’s economy, projecting that it will contract by four percent by the end of the year.
ADB’s previous outlook had projected that the national economy would decline by 5.4 percent compared to last year, as a result of the ravages of the pandemic.
Minister of Economy and Finance Aun Pornmoniroth, who represented the government to defend the draft law, told the Senate’s plenary session yesterday that he believes the budget will contribute to resolving the impact of COVID-19 and restoring Cambodia’s economy.
He is optimistic for the possibility of obtaining the COVID-19 vaccine in 2021, saying the Cambodian government has already set the action plan to purchase the vaccine for Cambodian people free of charge.
“We hope that the COVID-19 situation will get better, so we need to be prepared as a basis for recovery,” he said. “In 2021, we will face pressure due to this year’s floods. People will demand that the government pay more attention to the restoration of people’s livelihoods, especially in the agricultural sector.”
The draft law will next be sent to the Constitutional Council for another review before being submitted to King Norodom Sihamoni to sign to become law. Khmer Times
