The government has ordered a that total expenditure on fuel and lubricant allowances for government institutions be reduced by 30 per cent, with the aim of conserving vital reserves for contingencies and strategic tasks. The new reductions exclude the public security sector.
The directive was established in the “Rationalization and Strengthening the Efficiency of National Budget Expenditures for the Implementation of the Finance Law for the 2026 Management” circular, issued by the Ministry of Economy and Finance on March 20, but made public today, March 24.
The measure comes amid an ongoing and unpredictable fuel energy crisis.
The 30 per cent suspension applies to all ministries and institutions, including top-level bodies such as the Senate, the National Assembly, and the Constitutional Council.
Exceptions are made only for the Ministry of National Defence and the Ministry of Interior.
Although exempted from the cut, the defence and interior ministries must limit fuel usage to the credit levels specified in the 2026 budget law, with additional funds only available for special requirements such as strategic tasks.
The same reduction applies to the overseas mission expenses of all government departments.
All government institutions have been instructed to reduce long-distance travel for physical workshops and meetings, with the use of online systems recommended, except in cases of absolute necessity.
“Regarding participation in meetings abroad, ministries and institutions are requested to suspend participation in meetings that are less essential.
“In indispensable cases where Cambodian representation is required, ministries and institutions should request that the Ministry of Foreign Affairs and International Cooperation assign embassy representatives stationed in the host country to attend the meeting on their behalf,” the circular stated.
It added that for physical participation in overseas meetings, ministries and institutions should select only those that are strategic and high priority.
It also instructed institutions to analyse and re-prioritise their spending, shifting from non-essential tasks to only essential ones, while striving for savings and increasing “value for money” efficiency.
Some other institutions and units are exempt from these measures, including public administrative establishments, the Courts of First Instance and Prosecutors’ Offices attached to the Courts of First Instance in the capital and provinces, the four regional Appeal Courts, provincial technical departments and functions delegated with specific conditions in the health and education sectors.
Despite these exemptions, these institutions should make stringent efforts to avoid waste and non-priority usage, explained the circular.
“The measures for rationalising the suspension of expenditure credits and strengthening spending efficiency have been prepared within the framework of ensuring the normal functioning of state institutions, maintaining the Royal Government’s priority policies, and in the spirit of ensuring the balance and efficiency of the 2026 budget,” it said.
