The FINANCIAL -- The Asian Development Bank (ADB) is expanding its support for better public financial management in Cambodia through a $30 million loan to support effective and efficient public service delivery and inclusive growth.
The loan will fund subprogram 1 of the Strengthening Public Financial Management Program (SPFMP), which supports implementation of stage 3 of the four-stage Cambodian Government’s Public Financial Management Reform Program, according to ADB.
“The program will increase the availability and efficiency of public services in Cambodia, including services for poor and vulnerable groups, by strengthening public expenditure and revenue management and linking budgets more closely with government development policy,” said ADB Country Director in Cambodia, Samiuela Tukuafu. “Better public financial management will create additional room in the government’s budget and help allocate budget resources more effectively to promote inclusive growth and reduce poverty.”
The SPFMP aims to improve the efficiency, effectiveness, and accountability of public expenditure and revenue management in three ways. Policy and regulatory frameworks will be strengthened for expenditure and revenue management led by the Ministry of Economy and Finance (MEF). Capacity at selected line ministries will be enhanced to implement budgeting and expenditure management reforms. Finally, the capacity of the National Audit Authority (NAA) for external audit functions will be improved.
The program will deepen ADB’s previous support for MEF, NAA and the three rural development ministries and will expand support to three additional priority ministries: the Ministry of Education, Youth and Sports; the Ministry of Labor and Vocational Training; and the Ministry of Public Works and Transport.