The government has disbursed nearly 176 billion riel (around $44 million) in cash assistance to 495,307 households, equating to 1,833,344 individuals, during times of high inflation, as detailed in a report by the National Council for Social Protection (NCSP).
The support is part of the “Cash Assistance Payments Programme for Vulnerable Families during Inflationary Pressure”, which has executed distributions three times: first on December 10, 2022; followed by April 10, 2023; and lastly on July 10.
The main objective behind the initiative is to stabilise the livelihoods of vulnerable households, according to the report.
It stated that the cash injections seek to cushion them from the escalating market prices of goods during the ongoing crisis, intensified by the Covid-19 pandemic and geopolitical tensions such as the Russia-Ukraine conflict.
Chorn Narith, an undersecretary of state at the Ministry of Economy and Finance and secretary-general of the NCSP, explained that the cash subsidy’s structure was determined based on three geographical zones: Phnom Penh, urban and rural.
Phnom Penh residents were granted 99,900 riel per family. Urban families received 87,300 riel and rural households were allotted 81,300 riel. For each additional family member, those in Phnom Penh got an extra 28,000 riel, urban residents an additional 24,000 riel and those in rural areas received an extra 20,000 riel.
“During these challenging inflationary times, the government employed management information system [MIS] tools, complaint resolution methods and existing institutional frameworks to guarantee simplicity, efficiency, transparency and accountability,” he said.
Hong Vanak, an economics researcher at the Royal Academy of Cambodia (RAC), stated that relief payments during past inflationary periods encountered no significant issues, particularly in supporting the elderly and most vulnerable.
He mentioned that while the implementation went smoothly, it isn’t entirely complete.
He said practical observations show that the compilation of identification cards for impoverished households remains unfinished. He attributed this to the ever-changing circumstances in people’s lives, noting that while some families transition from hardship to improved conditions, others experience the opposite.
“While the assistance offered is still small, it’s targeted and transparent, helping to alleviate the challenges faced by vulnerable individuals to some extent. Additionally, it aids in stimulating economic activity within their local communities,” he said.
