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Published online by Cambridge University Press: 26 March 2024
Public financial management reform is the backbone of all reforms in the Cambodian government. To achieve policy objectives at minimal costs, the government budget must be credible, and its expenditure be efficient, at both the national and subnational levels of government. This section describes the PFM reforms by selected ministries: the Ministry of Education, Youth, and Sport (MOEYS) and the Ministry of Rural Development (MRD). It also introduces reform of the PFM system at the subnational administration level.
The four largest spending ministries in Cambodia are MOEYS, the Ministry of National Defence (MOD), the Ministry of Interior (MOI) and the Ministry of Health (MOH), accounting for 60 per cent of the total government spending. Individually, their shares of the budget in 2020 were approximately 21 per cent, 17 per cent, 13 per cent, and 11 per cent, respectively. MOEYS was selected for case studies as they are big spenders and more representative of the majority of administrative structures of the government while MRD was also selected as it more directly impacts the locals. MOI and MOD have special characteristics that separate them from mainstream line ministries, given that they are also involved in the armed forces and police spending.
6.1 PFMRP AND IMPACT ON MOEYS
MOEYS was established in 1996 with a mission to lead and develop the educational sector and programs for youth and sports. MOEYS is the highest-spending ministry, compared to others in the Cambodian government, having a budget of 21 per cent of the government’s total budget in 2020. Of this budget, 81 per cent was allocated to the salaries of teachers and staff. In the 1990s and early 2000s, when the government experienced budget shortages, MOEYS was more affected than others. Therefore, PRMRP Platform 1, which addressed this budget shortage, had a significant stabilizing effect on this ministry and the country’s education sector as a whole.
Management Support and Acceptance within MOEYS
The Minister of Education, Youth and Sport is the Chair of MOEYS’s PFMRP working group and is a champion of PFMRP as a whole. The director of MOEYS’ Department of Finance and its deputy directors are also the drivers of the Ministry’s reforms and have promoted clear and time-bounded action plans for reform.
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