Cambodia's government will continue to boost spending in social sectors such as education and healthcare in 2027 while raising its defense budget. On October 2, Prime Minister Hun Manet said the government has sufficient fiscal capacity to accommodate the increase in defense spending without cutting education and healthcare budgets.
According to government plans, the 2027 education budget will rise to around US$1.1 billion, up 4.7% year on year. Hun Manet said education remains one of the government's priority investment areas.
On healthcare, the 2027 budget is projected to grow to around US$680 million, an increase of 1.5% year on year. In addition, the government will continue to strengthen the primary healthcare system and improve service capacity at health centers and district-level referral hospitals.
With the start of the implementation of the conscription law, defense-related spending will also rise next year. Hun Manet said the additional defense expenditure will not crowd out the education and healthcare budgets.
He stressed that if fiscal adjustments are genuinely needed in the future, education and healthcare will be the last areas considered for cuts. At present, the government has not cut budgets for these two sectors.
At the same time, Cambodia will continue to increase social protection spending, supporting people facing livelihood difficulties through mechanisms such as the equity fund and medical assistance.
Hun Manet said the government has previously rolled out a series of livelihood interventions totaling more than US$1 billion, including fuel subsidies and cash assistance in four instalments to about 4.6 million people.