20 July 2010By Kim Pov
Radio Free Asia
Translated from Khmer by Socheata and Heng Soy
Click here to read the article in Khmer
On 20 July, opposition MP Son Chhay criticized the plan to increase the 2011 national budget, saying that the plan will hit a snag because Cambodia’s revenue is not on par with the government expenditures.
Son Chhay indicated that national revenue dropped between 2009 and 2010, and furthermore, starting from next year, a number of countries will start to demand repayment of their loans to Cambodia. Therefore, Son Chhay thinks that these are problems that would prevent the plan for a major increase in the budget.
Son Chhay said: “Where will the government take [the money] from? Because, we can see that the collection of national revenue is plagued with problems, even in 2009 and also in 2010, tax collection and customs taxes have dropped, so where will the money come from? Even if we count on foreign aid, there is no way to come up with $3 billion [for the budget].”
Son Chhay’s criticism came after a meeting of the National Assembly (NatAss) finance committee was held on Monday 19 July. The meeting also included the presence of officials from the ministry of Finance and it was focused on the discussion of the strategy for the 2011 national budget.
During the meeting, comrade Keat Chhon, the minister of Finance, estimated that the national budget must be raised to $3 billion, based on the budget request received by the ministry of Finance.
CPP MP Cheam Yeap, the chairman of the NatAss finance committee, added that the budget must be raised, whether by a small or a large amount, in response to the country’s development plan and a number of ministers must see growth in 2011, such as the ministry of Education, the Health ministry, the ministry of Rural Development and the ministry of Agriculture.
He explained further about the plan to seek income to pare the expenses in the 2011 budget: “The potential source of revenue comes from the customs tax collection, from the business tax collection, and from grants without having to pay back.”
Source from the ministry of Finance claimed that revenue for 2011 will only amount to about slightly over $2 billion, but the request for budget is close to $3 billion. Therefore, the 2011 expense budget exceeds the revenue by about $700 million, and the 2011 budget exceeds the 2010 budget by close to 40%.
The ministry of Finance will hold further meetings in August to review the requested budget increase for 2011.
Son Chhay indicated that national revenue dropped between 2009 and 2010, and furthermore, starting from next year, a number of countries will start to demand repayment of their loans to Cambodia. Therefore, Son Chhay thinks that these are problems that would prevent the plan for a major increase in the budget.
Son Chhay said: “Where will the government take [the money] from? Because, we can see that the collection of national revenue is plagued with problems, even in 2009 and also in 2010, tax collection and customs taxes have dropped, so where will the money come from? Even if we count on foreign aid, there is no way to come up with $3 billion [for the budget].”
Son Chhay’s criticism came after a meeting of the National Assembly (NatAss) finance committee was held on Monday 19 July. The meeting also included the presence of officials from the ministry of Finance and it was focused on the discussion of the strategy for the 2011 national budget.
During the meeting, comrade Keat Chhon, the minister of Finance, estimated that the national budget must be raised to $3 billion, based on the budget request received by the ministry of Finance.
CPP MP Cheam Yeap, the chairman of the NatAss finance committee, added that the budget must be raised, whether by a small or a large amount, in response to the country’s development plan and a number of ministers must see growth in 2011, such as the ministry of Education, the Health ministry, the ministry of Rural Development and the ministry of Agriculture.
He explained further about the plan to seek income to pare the expenses in the 2011 budget: “The potential source of revenue comes from the customs tax collection, from the business tax collection, and from grants without having to pay back.”
Source from the ministry of Finance claimed that revenue for 2011 will only amount to about slightly over $2 billion, but the request for budget is close to $3 billion. Therefore, the 2011 expense budget exceeds the revenue by about $700 million, and the 2011 budget exceeds the 2010 budget by close to 40%.
The ministry of Finance will hold further meetings in August to review the requested budget increase for 2011.
7 comments:
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5:16AM
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