Cambodia plans 3.1 bln USD for national expenses next year: minister [And $500 million of this comes from Chinese loans]

Souce:Xinhua 
Publish By Thomas Whittle
Updated 24/11/2012 4

PHNOM PENH, Nov. 23 — Cambodia planned to allocate 3. 1 billion U.S. dollars, in equivalent to 19.8 percent of the country’s GDP, for national expenses in 2013, a 12.9 percent rise year-on-year, finance minister Keat Chhon (pictured) said Friday.

Speaking to reporters after a meeting at the National Assembly, the minister said the budget will be focused on spending in general administration, national defense, security, social affairs, education, health, infrastructure, agriculture and economic development.

In 2013, the government will allocate some 400 million U.S. dollars toward the defense and security sectors, a 14.5 percent rise over last year’s allocation, he said.

Social affairs spending in 2013 will reach 686 million U.S. dollars, up 12.8 percent, he added. In social affairs, the spending will be allocated to nine ministries including education, health, women’s affairs, social affairs, labor, culture, information, religion and environment.

General administration will receive 275 million U.S. dollars, up 18 percent, while the economic sector including the ministries of agriculture, rural development, and water resources will get 148 million U.S. dollars, up 10 percent.

At the meantime, the government will continue providing a 20 percent pay raise to civil servants and armed forces in 2013, he said.

Cambodia’s economy is expected to grow by 7 percent to 15.6 billion U.S. dollars this year, the minister said, adding that Cambodian per capita GDP will surpass 1,000 U.S. dollars in 2013, up from 909 U.S. dollars in 2011.

He said the country could get out of the classification of a low income country and become a lower middle income country in the near future.

Lower middle income countries are defined by the GDP per capita between 1,006 U.S. dollars and 3,975 U.S. dollars.