Cambodia's 2027 Budget Proposal Clears the Cabinet

Spending and revenue targets are based on different growth rates

The government proposes KHR 39,700 billion in national-level expenditure for 2027, equivalent to 16.57% of projected GDP. That is 3.2% above the allocation in the 2026 financial management law, according to state news agency Agence Kampuchea Presse. The comparison is between budget plans; it does not establish how much was actually spent in 2026.

National-level revenue is estimated at KHR 32,327 billion, or 13.49% of GDP, up 6.7% against the amount budgeted for 2026. The figures indicate the government's intended fiscal envelope, while the eventual revenue outcome will depend on economic conditions and collection during the year.

Maintaining household livelihoods, fiscal stability and the ability to respond to shocks feature in the government's stated priorities. The headline totals, however, do not provide a complete ministry-by-ministry funding schedule.

For practical context, see Cambodia market and country comparisons. This development also connects with ADB Approves $72 Million for Cambodia's Rural Farming.

The 4.8% forecast is one economic scenario

Cambodia's government expects GDP growth to accelerate from approximately 4.0% in 2026 to 4.8% in 2027. It points to manufacturing, trade, hospitality, transport and agriculture as major contributors. Those are expectations underpinning the proposal, not evidence that each industry or individual business will grow at the same rate.

There is also a meaningful difference between forecasts. In its 28 September 2026 Article IV assessment, the International Monetary Fund projected 4.0% growth for Cambodia in 2027. The assessments were produced at different times under their own assumptions, giving businesses a reason to test budgets against more than one demand scenario.

GDP growth also says little on its own about a particular household's wages or living costs. Residents considering a move and business owners evaluating expansion need more local information than a national forecast can provide.

Provincial allocations will need to be traced through the final law

For sub-national administrations, the published initial expenditure figure is KHR 5,068 billion, with expected revenue of KHR 2,819 billion. Cambodianess reports that some earmarked transfers linked to health and education responsibilities are not included in that initial local spending figure. National and local amounts therefore need to be read with their different coverage in mind, rather than combined into an unexplained overall total.

The allocation ultimately reaching a provincial clinic, school or public project will matter more to residents than the country's aggregate spending figure. No specific new service or delivery date is established by the cabinet's approval alone.

The next stages are parliamentary consideration and formal enactment. The cabinet decision on 23 October approves a **draft**, not a final budget law; it also does not introduce new tax rates by itself. Any decision that depends on next year's public spending should use the enacted law and subsequent allocation documents when available.