PHNOM PENH: The Royal Government of Cambodia will have a budget of approximately $9.6 billion in 2026 for use in nation-building, development and national defence. This amount represents a slight increase over 2025. The Ministry of National Defence has been allocated budget almost $750 million.
The Royal Decree on the “Law on Financial Management for 2026”, signed by His Majesty King Norodom Sihamoni on Dec 17, 2025, states in Article 2 that the maximum amount of national budget expenditure credits for fiscal year 2026 is set at 38,452,658 million riel (approximately $9.61 billion). This figure represents an increase of about 8.63% compared to 2025, which totalled 35,398,175 million riels ($8.85 billion).
In 2026, the defence budget will be 2,999,597 million riel ($750 million), an increase of 1.18% compared to 2025. The defence ministry’s budget accounts for approximately 7.8% of the government’s total planned expenditure in 2026.
During a recent meeting with the Economic, Financial, Banking and Audit Commission (Commission 2) of the National Assembly, Minister of Economy and Finance Aun Pornmoniroth explained that the draft Law on Public Finance Management for 2026 was prepared in a context in which the 7th legislature of the Royal Government continues to implement its mission with strong commitment and determination.
He added that the 7th-mandate government is also focusing on accelerating socio-economic development and deepening reforms across all sectors, continuing on the path toward achieving upper-middle-income country status by 2030.
He emphasised that the 2026 budget was carefully prepared in line with the Medium-Term Public Financial Framework for 2026–2028, based on a comprehensive assessment of three major factors: 1. A declining trend in revenue; 2. Increasing pressure from expenditure needs, some of which require necessary increases — particularly for safeguarding sovereignty and territorial integrity, pensions, social protection programmes, investment shares and debt servicing; and 3 A decline in government savings due to the impacts of the Covid-19 crisis and other successive crises, from which recovery has not yet been achieved.
“Despite the challenges faced, the 2026 budget plan has been prepared in a balanced manner without using government savings, while ensuring sustainability in line with the policy stance of strengthening budget effectiveness to support stability and growth, with particular attention to enhancing national sovereignty and territorial integrity, human capital development, public administration reform and structural reforms, with governance at the core,” he said. - The Phnom Penh Post/ANN
