Cambodia’s Council of Ministers has approved the draft 2027 national budget, projecting economic growth of 4.8% and an increase in total state expenditure to KHR 39.7 trillion as the Royal Government seeks to maintain macroeconomic stability, protect household livelihoods and support economic development amid heightened global uncertainty.
The draft budget, approved on the morning of October 23, 2026, sets out the government’s fiscal priorities for 2027, including safeguarding national sovereignty and territorial integrity, maintaining national stability, strengthening economic resilience and ensuring the sustainability of public finances, according to a press release received by the Agence Kampuchea Presse (AKP).
Key Facts: Cambodia’s 2027 National Budget
Projected economic growth: 4.8% in 2027, compared with approximately 4.0% in 2026.
Total national expenditure: KHR 39,700 billion, equivalent to 16.57% of GDP.
Expenditure growth: 3.2% higher than under the 2026 Financial Management Law.
Expected national budget revenue: KHR 32,327 billion, equivalent to 13.49% of GDP.
Revenue growth: 6.7% higher than under the 2026 Financial Management Law.
Sub-national administration expenditure: KHR 5,068 billion.
Sub-national administration revenue: KHR 2,819 billion.
Projected GDP per capita: US$3,277 in 2027, up from approximately US$3,098 in 2026.
Main growth drivers: Industry, services and agriculture.
Cambodia’s 2027 Budget Increases Spending to KHR 39.7 Trillion
Total expenditure under the draft 2027 national budget is set at KHR 39,700 billion, equivalent to 16.57% of Cambodia’s gross domestic product (GDP).
The proposed spending represents a 3.2% increase compared with the 2026 Financial Management Law, indicating a planned expansion in government expenditure to support national priorities and economic activity.
The government said the budget is intended to strengthen the country’s ability to respond to domestic and international challenges while protecting livelihoods and maintaining fiscal sustainability.
The draft budget also allocates KHR 5,068 billion to sub-national administrations. This represents 11.9% of total state budget expenditure and is equivalent to 2.12% of GDP.
Sub-national administrations play an important role in delivering public services and implementing development priorities at local levels. However, the announcement does not specify how the proposed allocation will be distributed among individual provinces, municipalities, districts or communes.
Government Revenue Expected to Rise 6.7%
Cambodia expects total national budget revenue to reach KHR 32,327 billion in 2027, equivalent to 13.49% of GDP.
The projected revenue is 6.7% higher than the amount set out in the 2026 Financial Management Law.
The government also estimates that revenue collected for sub-national administrations will reach KHR 2,819 billion, equivalent to 8% of total state budget revenue and 1.18% of GDP.
The projected increase in revenue is an important component of the government’s fiscal framework. Stronger revenue collection can help finance public expenditure, support essential services and reduce pressure on public finances.
Nevertheless, the draft budget announcement does not provide a detailed breakdown of expected revenue by tax category, customs duties, non-tax revenue or other sources. The extent to which the revenue target depends on economic growth, improved compliance or changes in collection efficiency therefore remains unclear from the information released.
What the Budget Means for Cambodia’s Fiscal Position
The proposed 2027 budget sets out a framework in which expenditure is expected to grow more slowly than revenue.
Based on the headline figures, planned national budget revenue of KHR 32,327 billion would be approximately KHR 7,373 billion below total expenditure of KHR 39,700 billion.
This difference is a preliminary comparison of the stated revenue and expenditure totals, not a complete measure of the government’s financing requirement. The final fiscal balance would depend on the full budget framework, including any other financing items and accounting adjustments.
The figures nevertheless highlight the importance of balancing development priorities with sustainable public finances. The government must finance its policy commitments while retaining sufficient capacity to respond to economic shocks, external pressures and other unforeseen needs.
The draft budget’s approval by the Council of Ministers marks a step in the budget process. The announcement provided by AKP does not establish whether the draft has completed all subsequent legislative and formal approval stages.
Cambodia’s Economy Projected to Grow 4.8% in 2027
Cambodia’s economy is projected to expand by approximately 4.0% in 2026 before accelerating to 4.8% in 2027.
The government also expects GDP per capita to increase to US$3,277 in 2027, compared with approximately US$3,098 in 2026.
That would represent an increase of about US$179, or approximately 5.8%, in nominal GDP per capita based on the published estimates. GDP per capita is an average measure of economic output per person; it does not mean that every Cambodian resident’s income will rise by the same amount.
The growth projection reflects the government’s expectation that several major economic sectors will continue contributing to national output. The budget identifies industry, services and agriculture as the three principal drivers of projected growth.
Actual performance will depend on conditions affecting domestic production, consumer demand, trade, investment and the wider global economy.
Industry to Benefit from Manufacturing Growth
Industry is expected to remain a major contributor to Cambodia’s economic expansion in 2027.
The draft budget identifies several activities expected to support industrial growth, including:
Garment manufacturing.
Non-garment manufacturing.
Food and beverage production.
Tobacco manufacturing.
The inclusion of non-garment manufacturing alongside the garment sector reflects the importance of a broader industrial base to Cambodia’s growth outlook.
Manufacturing activity can support employment, exports, investment and demand for logistics and other business services. Expanding production beyond traditional export-oriented industries may also create opportunities to diversify the economy.
However, the budget announcement does not provide sector-specific growth rates, export forecasts or employment projections. It therefore remains unclear how much each manufacturing activity is expected to contribute to the overall 4.8% growth target.
Services Growth to Be Supported by Tourism, Trade and Digital Industries
The services sector is another major pillar of Cambodia’s 2027 economic outlook.
The government expects growth to be supported by hospitality and food services, wholesale and retail trade, transport and storage, information technology, and telecommunications.
Hospitality and food services are particularly relevant to tourism-related economic activity, while wholesale and retail trade connect producers, distributors and consumers across the domestic market.
Transport and storage services support the movement of goods and people, linking businesses with domestic customers and international markets. Meanwhile, information technology and telecommunications are increasingly important to business operations, digital services and economic connectivity.
Together, these activities can support employment and commercial activity across multiple industries.
For Cambodia’s business community, the projected expansion of services highlights the importance of improving operational efficiency, developing workforce capabilities and adapting to changes in consumer demand and technology.
The government’s announcement, however, does not specify the expected contribution of tourism receipts, retail sales, transport services or digital industries to overall economic growth.
Agriculture Remains a Key Economic Growth Driver
Agriculture is the third major sector identified in the draft budget’s growth outlook.
The government expects crop production, livestock farming and fisheries to support agricultural expansion in 2027.
Agriculture remains important to rural livelihoods, food supply chains and domestic economic activity. Growth in these areas can also generate demand for agricultural inputs, processing, storage, transportation and distribution.
Increasing agricultural productivity and strengthening connections between producers and markets can create opportunities for businesses involved in food processing and agro-industry.
However, the budget announcement does not provide detailed agricultural production targets, commodity forecasts or estimates of the sector’s contribution to GDP growth in 2027.
Managing Economic Uncertainty While Protecting Livelihoods
The government has framed the 2027 budget around the need to safeguard national sovereignty and territorial integrity, maintain stability, protect livelihoods and support targeted economic growth.
It also emphasises the importance of maintaining sufficient capacity to respond to uncertainty while preserving sustainable public finances.
These objectives place fiscal management at the centre of the country’s economic policy priorities. The government must balance spending on national priorities and development with the need to maintain a sound financial position.
For households and businesses, the practical impact of the budget will depend not only on the overall spending and revenue totals but also on how funds are allocated, how public programmes are implemented and whether projected economic growth translates into stronger employment, business opportunities and household purchasing power.
The detailed budget documents and subsequent implementation decisions will be important for understanding the sectoral distribution of expenditure and the policies that will receive the greatest financial support.
Angkor Times Analysis: Three Areas to Watch in Cambodia’s 2027 Budget
Cambodia’s proposed 2027 budget combines a higher economic growth target with increased government expenditure and stronger projected revenue. Three areas warrant particular attention as the budget moves through the approval process and into implementation.
1. Whether Revenue Growth Can Support Fiscal Sustainability
Projected revenue growth of 6.7% exceeds the 3.2% increase in planned expenditure. If revenue targets are achieved, this could help the government manage its financing needs.
The key question is whether the revenue projections are supported by sustainable economic activity and effective collection, particularly if external conditions weaken or domestic economic growth falls short of expectations.
The headline figures alone are insufficient to assess the full fiscal position. More detailed information on the projected deficit, financing sources, debt servicing and revenue composition would provide a clearer picture.
2. Whether Growth Reaches Businesses and Households
The projected 4.8% growth rate is an important indicator of the government’s economic outlook, but aggregate growth does not automatically translate into broad-based improvements in living standards.
The composition of growth, the quality of employment, wage developments, productivity and access to business opportunities will influence how its benefits are distributed.
For Cambodia’s private sector, sustained growth across manufacturing, services and agriculture could support demand and investment. The scale of those benefits will depend on actual sector performance and the business environment.
3. Whether the Three Main Sectors Can Deliver the Forecast
Industry, services and agriculture each face different operating conditions and investment requirements.
Manufacturing performance depends on production capacity, market demand and export conditions. Services growth is influenced by consumer spending, tourism, trade and transport activity. Agriculture depends on production conditions, productivity, market access and supply-chain efficiency.
The government’s 4.8% projection will therefore need contributions from multiple sectors rather than relying on a single source of expansion.
Sector-level data released during 2027 will help determine whether the economy is following the trajectory outlined in the draft budget.
Frequently Asked Questions
What is Cambodia’s projected economic growth rate for 2027?
Cambodia’s economy is projected to grow by 4.8% in 2027, compared with approximately 4.0% in 2026.
How much will Cambodia spend under the proposed 2027 national budget?
Total expenditure is set at KHR 39,700 billion, equivalent to 16.57% of GDP. This is 3.2% higher than under the 2026 Financial Management Law.
How much revenue does Cambodia expect to collect in 2027?
The government projects national budget revenue of KHR 32,327 billion, equivalent to 13.49% of GDP and 6.7% higher than under the 2026 Financial Management Law.
What is Cambodia’s projected GDP per capita in 2027?
GDP per capita is expected to reach US$3,277 in 2027, up from approximately US$3,098 in 2026.
Which sectors are expected to drive Cambodia’s economic growth?
The three principal sectors identified in the draft budget are industry, services and agriculture. Manufacturing, hospitality, trade, transport, information technology, crop production, livestock and fisheries are among the activities expected to contribute.
Has Cambodia’s 2027 national budget received final approval?
The Council of Ministers approved the draft budget on October 23, 2026. The announcement cited here does not confirm completion of all subsequent legislative and formal approval stages.