2024-02-28-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 Overview

This report, titled Cambodia Public Finance Review: From Spending More to Spending Better, provides an in-depth analysis of Cambodia's public finance landscape, focusing on the transition from increasing public spending to improving the quality and effectiveness of that spending. It evaluates fiscal resilience, public expenditure trends, and the performance of key sectors such as education, health, and agriculture. The report also includes a case study on subnational public financial management in Preah Sihanouk province and offers recommendations to enhance fiscal and administrative efficiency.

Main Chapters and Key Findings

Chapter 1: Achieving Fiscal Resilience and Maximizing Fiscal Space

• Introduction: Highlights the importance of fiscal resilience and the need for better fiscal space management.
• Recent Macroeconomic Trends: Notes the increase in government expenditure during the pandemic and the shift in fiscal policy.
• Revenue Trends: Cambodia has improved domestic revenue mobilization, but challenges remain in tax collection and efficiency.
• Expenditure Trends: Expenditure increased significantly during the pandemic, driven by wage bill and non-wage recurrent planned spending.
• Fiscal Balance: Cambodia has pursued a conservative fiscal policy, resulting in low public debt and high reserves.
• Public Debt: Maintains low levels of public debt, supported by strong fiscal discipline.
• Fiscal Space and Progressivity: Emphasizes the need to maintain fiscal space and promote more progressive taxation to ensure equitable resource allocation.

Chapter 2: Enhancing Quality of Public Spending

• Public Expenditure Trends: Overall government spending increased, with a significant portion allocated to wages and recurrent planned expenditure.
• Strategic Expenditure Prioritization: Recommends better alignment of spending with national priorities and improved budget planning.
• Distributional Impacts: Fiscal policies have had uneven impacts, with disparities in access and outcomes across regions and income levels.
• Public Sector Management: Highlights the need for improved management and transparency to enhance the quality of public expenditure.
• Anti-Corruption Performance: Cambodia has made progress in transparency and anti-corruption efforts, but challenges persist.
• Recommendations: Includes improving budget oversight, enhancing transparency, and promoting accountability in public spending.

Chapter 3: Maximizing Effectiveness of Public Health Policy

• Sectoral Context: Describes the current state of the health sector, including access and service delivery.
• Health Sector Financing: Discusses the reliance on out-of-pocket (OOP) expenditures and the role of external funding.
• Key Findings: Highlights the importance of health equity, the need for improved infrastructure, and the impact of OOP on financial hardship.
• Recommendations: Includes strengthening health systems, improving financial management, and promoting health insurance schemes.

Chapter 4: Strengthening Performance Orientation of Public Spending to Boost Productivity in Agriculture

• Sectoral Context: Agriculture remains a vital sector with significant employment and GDP contributions.
• Agricultural Expenditure: Public spending in agriculture has increased, but efficiency and impact remain low.
• MAFF Expenditure: The Ministry of Agriculture, Forestry and Fisheries (MAFF) has a significant portion of its spending on recurrent and administrative costs.
• Public Financial Management (PFM): Highlights the need for better budget planning and execution in the agriculture sector.
• Recommendations: Includes improving budget management, increasing transparency, and enhancing program performance.

Chapter 5: Improving Capital Budget Management for Irrigation and Water Resources

• Sectoral Context: Irrigation is critical for agricultural productivity and food security.
• Expenditure in Irrigation: MOWRAM (Ministry of Water Resources and Meteorology) has increased spending on irrigation, but execution rates are low.
• Budget Management: Reveals inefficiencies in budget allocation and execution, with a focus on investment and maintenance.
• Key Findings: Shows a correlation between irrigation spending and poverty levels, but challenges in program implementation persist.
• Recommendations: Includes better planning, monitoring, and coordination for irrigation projects.

Chapter 6: Key Lessons on Subnational PFM Based on Case Study of Preah Sihanouk Province

• Provincial Administration: Reviews the structure and performance of the provincial administration.
• District and Municipality Levels: Notes challenges in budget execution and management at these levels.
• Commune/Sangkat Levels: Highlights the need for better coordination and transparency at the grassroots level.
• Recommendations: Includes improving budget execution, enhancing transparency, and strengthening local governance.

Key Recommendations Across the Report

• Fiscal Resilience: Maintain fiscal discipline and ensure sustainable fiscal space.
• Public Expenditure Quality: Improve budget planning, execution, and transparency.
• Health Sector: Strengthen health systems, promote insurance schemes, and improve financial management.
• Agriculture Sector: Enhance budget management, increase productivity, and ensure better alignment with national goals.
• Irrigation Management: Improve planning, execution, and coordination of irrigation projects.
• Subnational PFM: Strengthen local governance, enhance transparency, and improve budget oversight.

Conclusion

The report emphasizes the need for a shift from simply increasing public spending to ensuring that spending is more effective, equitable, and transparent. It calls for better fiscal management, improved public financial systems, and targeted investments in key sectors such as health and agriculture. The case study of Preah Sihanouk province provides insights into the challenges and opportunities for subnational financial management. Overall, the findings suggest that Cambodia has made progress in fiscal resilience and public spending, but there is significant room for improvement in the efficiency and impact of its financial management practices.