MEF to step up public financial efficiency
MEF to step up public financial efficiency
The Ministry of Economy and Finance (MEF) and the development partners recently reviewed the implementation process of the revenue collection strategy along with the non-tax revenue management reform and the state property management policy to strengthen pubic financial efficiency and sustainability.
The decision to strengthen pubic financial efficiency and sustainability came up during ‘The First Quarter of the Public Financial Management Reform Program (PFMRR) Phase Four 2024’ held on June 19. Aun Pornmoniroth, Deputy Prime Minister, Minister of MEF and also Chairman of the Public Financial Management Reform Steering Committee presided over the meeting to discuss and monitor the implementation process of the PFMRR.
Among those who took part in the meeting were members of the PFMRP Steering Committee along with representatives of the general departments of MEF and nongovernmental organisations (NGOs).
Based on the First Quarter Report, the implementation of the PFRMR under the action plan of MEF is moving on the right track and its development progress is growing as planned, said an MEF release.
Pornmoniroth said, “The country is facing high risks due to the uncertainty of the world economic and financial conditions which require the Royal Government of Cambodia (RGC) to take immediate response to support the national economy and improve the investment and business environment.”
“The public financial activities are needed regularly as they play an important role in sustaining the public financial management system hence the reconciliation of some functions in these systems was discussed between the RGC and stakeholders, agreeing to continue investing in the Financial Management Information System (FMIS), a core system of the project.”
To link the budget with the government policies, the Medium-Term Fiscal Framework 2025-2027 (MTFF) has been approved by the RGC with the aim of ensuring fiscal sustainability to strengthen resilience and promote economic growth towards a vision in 2025, the Deputy Prime Minister added.
The MTFF issued on April 2024 stated that Cambodia has adopted a market economy system through five factors by opening international trade, attracting foreign direct investment (FDI), rehabilitating physical infrastructures, developing human capital and reforming institutions and governance.
According to the MEF press release, the Revenue Collection Strategy 2024-2028, the non-tax revenue management system reform and the national property management basic documents have been prepared and will be implemented shortly to boost the performance in particular to ensure the efficiency of revenue collection.
Additionally, the State Asset Register Management Information System (SARMIS) and Non-Tax Revenue Management Information System (NRMIS) have also been implemented across the whole country aimed at strengthening the provincial and capital administrations.
Based on the General Secretariate of the PFMRR Steering Committee, the programme was launched in December 2004 to transform Cambodia’s public financial management system by strengthening input and centralization to meet international best practices.
The implementation of the programme has been prepared in four phases such as, first was the ‘budget credibility’ which was implemented at the end of 2004 to 2008, second was the ‘financial accountability’ from 2009-2015, third was the ‘budget-policy linkage’ 2016-2020 and lastly is ‘performance accountability’ for 2021-2025.
