世界银行-柬埔寨公共财政评论：从增加支出到改善支出（英）-214页_5mb

Cambodia Public Finance Review: From Spending More to Spending Better (2023)

Core Content

This report, Cambodia Public Finance Review: From Spending More to Spending Better, published by the World Bank in 2023, evaluates the country's public finance management and spending effectiveness across key sectors such as education, health, agriculture, and water resources. It highlights the need to shift from increasing public spending to improving the quality and efficiency of public spending.

Main Points

Fiscal Resilience and Space

• Fiscal Trends: Cambodia has seen a significant increase in government expenditure, particularly due to rising wage bills and non-wage recurrent spending.
• Revenue Mobilization: The country has improved domestic revenue mobilization, which has contributed to fiscal resilience.
• Debt and Reserves: Cambodia maintains a conservative fiscal policy, resulting in low public debt and high reserves.
• Fiscal Discipline: The government has managed to implement countercyclical spending, which is crucial for economic stability.
• Fiscal Space: The report emphasizes the importance of maintaining fiscal space and promoting progressive taxation to support sustainable development.

Quality of Public Spending

• Spending Prioritization: Strategic public expenditure prioritization is essential to ensure that resources are directed towards high-impact areas.
• Distributional Impact: Fiscal policies have distributional effects, with a focus on reducing inequality through targeted spending.
• Sectoral Efficiency: Public sector management needs to be strengthened to improve the quality of public expenditure.
• Anti-Corruption Efforts: Cambodia has made progress in anti-corruption, but challenges remain in transparency and accountability.
• Recommendations: The report suggests improving budget oversight, enhancing public integrity, and increasing transparency in public spending.

Public Health Policy

• Health Sector Financing: Public health spending in Cambodia is heavily reliant on out-of-pocket (OOP) payments, which can lead to financial hardship.
• Health Outcomes: While Cambodia has improved life expectancy and reduced child mortality, disparities between urban and rural areas persist.
• Health Equity Fund (HEF): The HEF is a key mechanism for improving health equity and access.
• Private Sector Engagement: The government has engaged the private sector to support universal health coverage (UHC) through various tools.
• Recommendations: The report recommends improving health financing, enhancing the role of the HEF, and strengthening financial management at health facilities.

Agricultural Productivity

• Agricultural Expenditure: Public spending on agriculture has increased, but its effectiveness is questionable.
• Agricultural Output: The agriculture sector has shown growth, but the efficiency of public investment in the sector needs improvement.
• Public-Private Partnerships (PPPs): The government has explored PPPs to enhance agricultural productivity and infrastructure development.
• Recommendations: Strengthening budget management in agriculture, improving program-based budgeting, and enhancing coordination among line ministries are key recommendations.

Irrigation and Water Resources Management

• Irrigation Expenditure: Public investment in irrigation has increased, but the execution rate is low, and there are inefficiencies in budget allocation.
• Water Resource Management: The Ministry of Water Resources and Meteorology (MOWRAM) has been involved in irrigation and water resource projects.
• Recommendations: The report suggests improving the management of capital budgets, enhancing the effectiveness of irrigation projects, and increasing transparency in budget execution.

Subnational PFM

• Provincial and Municipal Administration: The case study of Preah Sihanouk province highlights the challenges and opportunities in subnational public financial management (PFM).
• Budget Execution: There are significant gaps in budget execution at the provincial level, indicating inefficiencies in resource allocation and management.
• Recommendations: Strengthening subnational PFM through improved transparency, accountability, and capacity building is necessary for effective service delivery.

Key Information

• Government Expenditure: Increased significantly during the pandemic, mainly due to higher wage bills and non-wage recurrent spending.
• Revenue Trends: Domestic revenue mobilization has improved, but reliance on OOP payments remains a challenge.
• Sectoral Prioritization: The report emphasizes the need for strategic prioritization of public spending to maximize impact.
• PFM Reforms: Several reforms are recommended to enhance the quality and efficiency of public spending, including program-based budgeting, performance reporting, and anti-corruption measures.
• Fiscal Space: Maintaining fiscal space is critical for future development, especially in the context of economic growth and social spending.
• Health Equity: The Health Equity Fund (HEF) and other mechanisms are suggested to improve health equity and access to services.
• Agricultural Productivity: The agriculture sector is a key focus, with recommendations to improve productivity and efficiency through better public investment and management.
• Subnational Management: The report underscores the importance of strengthening subnational PFM to ensure effective and equitable service delivery.

Conclusion

The Cambodia Public Finance Review: From Spending More to Spending Better calls for a shift in public finance management from merely increasing spending to improving the quality, efficiency, and impact of public expenditures. It highlights the importance of strategic prioritization, enhanced transparency, and accountability in fiscal management, particularly in the health and agriculture sectors, and the need for stronger subnational PFM to ensure equitable service delivery and sustainable development.