The draft budget law 2026 focuses on protecting sovereignty and territorial integrity, mitigating revenue decline and addressing a decrease in state reserves. It was presented to a National Assembly (NA) commission on November 17 for inspection, and to allow lawmakers to ask questions to clarify their understanding of the bill.
An NA statement noted that Deputy Prime Minister Aun Pornmoniroth, Minister of Economy and Finance, informed the NA’s Economic, Finance, Banking and Audit Commission (Commission 2) that the draft was prepared to support the seventh-mandate government as it continues its efforts to protect the Kingdom’s sovereignty and territorial integrity, while maintaining peace and the well-being of the people.
He explained that the seventh-mandate government is also focused on accelerating socio-economic development and deepening reforms in all sectors, on a path to achieving high-middle-income country status in the future.
Pornmoniroth stated that the budget was meticulously prepared in line with the medium-term public finance framework for 2026-2028 and based on a comprehensive assessment, taking into account three major aspects.
First, the trend of declining revenue.
Second, the pressure of increasing expenditure demands, with certain essential areas requiring growth, especially for protecting sovereignty and territorial integrity, pensions, social protection programmes, investment matching funds and debt services.
The third aspect is the decline in the Royal Government’s savings due to the impact of the COVID-19 crisis and subsequent crises, which have not yet recovered.
“Despite facing challenges, the 2026 budget plan has been prepared with balance, without using the government’s reserves, and ensuring sustainability,” he said.
“This is in line with the policy stance of strengthening budget effectiveness to support stability and growth, with a special focus on enhancing national sovereignty and territorial integrity protection capabilities, human capital development, public administration reform and structural reform, with governance at its core,” he explained.
The draft law has been included in the agenda of the upcoming NA session for approval, according to the National Assembly.
