The Ministry of Economy and Finance has announced a reduction in the unnecessary expenditure of a number of ministries, explaining that the saving is for necessary needs in the fight against COVID-19.
Reduction in some ministries’ spending are due to the February 20 Community Event and the lockdown measures have generally affected the 2021 national budget, according to the ministry’s directive issued on Tuesday.
The ministry said the expenditure reduction is to ensure the socio-economic stability of Cambodia.
Fifty percent of the approved budget for 2021 will be cut off from unnecessary spending and expenditure that does not significantly affect the work activities of ministries and institutions.
Expenses on office supplies, domestic and foreign training, reception of national and foreign guests, meetings, seminars and conferences, exhibitions at home and abroad, domestic missions, festivals, building maintenance, fuel and lubricant and so on are subject to be reduced in 2021.
The ministry said that the reduction is also applied to the provision of funding for the reserved projects of the Ministry of Public Works, the Ministry of Rural Development and the Ministry of Water Resources, except the projects already approved, such as the flood-damaged rehabilitation project in 2020.
The cost of temple renovation and maintenance of APSARA Authority, Preah Vihear Authority and Sambo Prei Kuk Authority are also part of the exceptions, it added.
Additionally, it pointed out, the exception covers all necessary expenditure of the sub-national administrations and all specialised provincial and municipal departments with many duties during the fight against the COVID-19 spread, as well as expenditure of the Ministry of Health, the Ministry of Defence, and the Ministry of Interior (for public security sector).
“Strengthening expenditure effectiveness is prepared within the framework of ensuring the normalisation of state institutions and the balance of people’s livelihoods while saving financial resources to meet the needs and urgency of the government in combating the COVID-19 pandemic,” the directive underlined.
In 2021, the government planned to spend about US$7.5 billion, a decrease of 1.9 percent compared to 2020.
Source: Agency Kampuchea Press