This paper presents Cambodia’s technical assistance (TA) report on Government Finance Statistics (GFS) Mission. The mission noted a limited progress in the compilation and dissemination of GFS and Public Sector Debt Statistics (PSDS) since the previous TA mission. The mission advised on the treatment of social security benefits and government support to public financial corporations in line with the Government Finance Statistics Manual 2014. The mission discussed with the gross domestic product (GDP) GFS Team the treatment of other accounts receivable/payable in GFS time series. The mission reviewed the joint work of the Ministry of Economy and Finance GDP and the National Bank of Cambodia on reconciling the coverage of government deposits, but progress here has been limited. The mission discussed quality issues in classifying government expenditure according to Classification of the Functions of Government. Additional limitations relate to the availability and detail of source data on net acquisition of nonfinancial assets. The mission also reviewed the first draft of the GFS/PSDS Technical Compilation and Dissemination Guidelines for Cambodia. The draft includes general overview and advantages of using GFS/PSDS framework, selected provisions on the existing institutional arrangements for GFS/PSDS in Cambodia, and the description of the general government sector.
International Monetary Fund. Asia and Pacific Dept
After suffering a recession during the pandemic, the Cambodian economy was on a steady recovery path, but is facing new pressures in 2022 that have buffeted external demand and increased inflation rates. The authorities have largely continued with crisis policy responses and have pressed on with policy reforms. The recovery is projected to continue, notwithstanding external stresses. Risks of public debt distress remain low. However, the level of private debt raises concerns about potential debt overhang.
A follow-up technical assistance (TA) mission to the Ministry of Economy and Finance (MEF) was conducted remotely during 12 days over the period of April 26–July 15, 20211. This activity was part of Cambodia’s participation in the Japan-funded Government Finance Statistics (GFS) and Public Sector Debt Statistics (PSDS) Project for selected Asian countries (JSA3)2. The mission liaised with Mr. Alexandros Mourmouras, Director of the Capacity Development Office in Thailand (CDOT), Mr. Rifaat Basanti, the IMF Regional JSA3 GFS/PSDS Project Manager, Ms. Delphine Anne Moretti, the IMF Regional Public Financial Management (PFM) Advisor for Southeast Asia, and Mr. Sean Craig, Macroeconomic Advisor – all in the CDOT, and Mr. Yasuhisa Ojima, the IMF’s Resident Representative for Cambodia. The mission would like to thank the authorities for their excellent collaboration and support.
International Monetary Fund. Asia and Pacific Dept
The rapid spread of the virus in Cambodia during 2021 has set the economy back again, after external demand collapsed in 2020. The authorities responded to the crisis with measures to support households and firms, including increased healthcare spending; a new system of cash transfers to vulnerable households; loans and guarantees; tax breaks; and wage subsidies and retraining. Despite these measures, growth is estimated to have contracted by -3.1 percent in 2020. Growth in 2021 is expected to be 2.2 percent, slowly recovering to pre-crisis rates of around 6½ percent.
The A remote technical assistance (TA) mission to the Ministry of Economy and Finance (MEF) was conducted during ten days over the period of August 31–November 30, 2020.1 This activity was part of Cambodia’s participation in the Japan-funded Government Finance Statistics (GFS) and Public Sector Debt Statistics (PSDS) Project for selected Asian countries (JSA3)2. The overall goal of the JSA3 Project is to assist the MEF in strengthening compilation and dissemination of fiscal data in line with the GFS Manual 2014 and the PSDS: Guide for Compilers and Users to support macro-fiscal surveillance and decision making. The mission liaised with Mr. Alexandros Mourmouras, Director of the Capacity Development Office in Thailand (CDOT), Mr. Rifaat Basanti, the IMF Regional JSA3 GFS/PSDS Project Manager, Mr. Suhas Joshi, the IMF Regional Treasury Advisor—both in the CDOT, Mr. Yasuhisa Ojima, the IMF’s Resident Representative for Cambodia, and Ms. Magdalena Tomczynska-Smith, the IMF’s Budget Planning Advisor for Cambodia. The mission would like to thank the authorities for their excellent collaboration and support (Appendix I lists the main official contacts).
As part of Cambodia’s participation in the Japan-funded Government Finance Statistics (GFS) and Public Sector Debt Statistics (PSDS) project for selected Asian countries (JSA3),1 this mission conducted an in-country workshop (December 2–4, 2019) and provided follow-up technical assistance (TA) on GFS and PSDS (December 5–13, 2019).2 Both activities were aimed at strengthening compilation and dissemination of fiscal data in line the GFS Manual 2014 (GFSM 2014) and the PSDS: Guide (PSDSG) to support surveillance and decision making. At the request of the authorities, the TA mission participated in the inter-agency workshop on data consistency in macroeconomic statistics conducted by the Ministry of Economy and Finance (MEF) during December 5–6, 2019.