Revenue Mobilization: The Case of Cambodia 3 Session 7_Cambodia_Revenue...Budget-policy linkages...
Transcript of Revenue Mobilization: The Case of Cambodia 3 Session 7_Cambodia_Revenue...Budget-policy linkages...
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Ministry of Economy and Finance
Cambodia
December 2019
Revenue Mobilization: The Case of Cambodia
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Content
1. Cambodia's public financial system
• Revenue Mobilization Strategy 2019-2023
• Budget System Reform Strategy for Sub-National Administration 2019-2025
2. Revenue Mobilization for Municipal Finance
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Cambodia's public financial system
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Public Financial Management Reform Program (2004-2025)
Budget credibility(2004-2008)
FinancialAccountability
(2009-2015)
Budget-policy linkages
(2016-2020)
Accountability(2021-2025)
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PFMRP Stage 3: “Budget-policy linkages”
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Budget System Reform Strategy 2016-2025
Revenue Mobilization Strategy 2019-2023
Public Procurement System Reform
Strategy 2019-2025
Budget System Reform Strategy for Sub-
National Administration 2019-2025
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Revenue Mobilization Strategy 2019-2023 (Vision, Objective, Targets and Approaches)
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effective and efficient revenue
collection
effective and efficient revenue
collection
improve investment climate and re-
orient investment direction
improve investment climate and re-
orient investment direction
strengthen competitiveness
strengthen competitiveness
promote economic diversification
promote economic diversification
Modernizing tax and non-tax revenue administration and policy
Vision: Transforming the national revenue system to be modern that can respondto the development needs and the changes of social-economic structure.
Vision & Objective
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Targets & Approaches
Maintain revenue
sustainability at optimal
level
Ensure sustainable economic
growth
Ensure fairness
Ensure social equity
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• at least 0.3 percentage points of GDP• Improve service quality and productivity
Approaches
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Budget System Reform Strategy for Sub-National
Administration 2019-2025
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Cambodia: Sub-National Administration (SNA)
9Source: PEFA of Phnom Penh Capital Administration (2019)
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National Programme on Sub-National Democratic Development (NP-SNDD) 2010-2019 :“delivery of core services” 1. central government (ministries and provinces)
2. sub-national authorities (mainly districts and municipalities)
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Ministry of Economy and Finance six fiscal transfers instruments:• District/Municipality Fund (DM Fund),• formula-based provincial transfer
mechanism• Commune/Sangkat Fund (CS Fund),• Sub-National Investment Fund (SNIF),• Conditional grants• Own-source revenue
Fiscal Decentralization Framework (1/2)
Source: PEFA of Phnom Penh Capital Administration (2019)
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Transfer Functions& responsibility0101
Own source revenue0202
Fund Transfer0303
Fiscal Decentralization Framework (2/2)
• No Borrowing and bond issue• Capital and provincial
administration follow zero-budget balance approach
• Recent tax revenue decentralization (Property tax) though collecting procedure is prepared by tax administration (GDT)
11Source: PEFA of Phnom Penh Capital Administration (2019)
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Fiscal and Budgetary of SNA
Revenue ofSub-national level
Expenditure of Sub-national level
Current Ex
Capital Ex.
1. Current revenue (Tax & Non-tax)
2. Subsidy from National level
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Budget Balance
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SNA Revenue Collection
• Patent tax • Stamp registration tax• Tax on means of
transportation• Public Lighting tax• Accommodation tax• Tax on unused land• Tax on property rental • Property tax
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Public service-related fee &
charge
Royalty
Tax Revenue Non-Tax Revenue
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Sub-National Budget System Reform Strategy 2019-2025 (1/2)
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Regulations Law on Public Finance System (2008) & Law on Finance and Property Management of Sub-National administration (2011)
Target Aligned with Budge System Reform Strategy 2016-2025:(Program budgeting, budget-policy linkage, etc)
Development Plan 5 year-development plan & 3-year rolling investment programs
Modernization Budget strategy plan, program budgeting and Financial Management Integrated System (FMIS)
Service coverage One-stop services cover 14 sectors (education, health, industry, etc)
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Revenue Mobilization for Municipal Finance
(Phnom Penh Capital Administration)
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Overview of Phnom Penh Capital
• Area: 679 Km2
• Population: 2.12 millions • Men: 1.03 millions • Women: 1.09 millions
• No of Household: 399, 203 • Density: 3,136 persons/Km2• Khan: 14• Sangkat: 105• Village: 953
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Budgetary FrameworkPhnom Penh Capital Administration revenue source:• Non-tax revenue and tax revenues• Conditional grant • subsidy from central government.
Source: PEFA of Phnom Penh Capital Administration (2019)
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Decentralization
Source: PEFA of Phnom Penh Capital Administration (2019)
• Environmental education (2018)• Orphanage Center (2019).
Functional transfer
• “one window service” offices capital/provincial and municipal/district/khan administrations
Administrative transfer
• Tax on property rental (2017)Revenue transfer
• 5 year-development plan & 3-year rolling investment programs: “Preparation and Developing the PIP”: (7 classifications)
• No interference form central on communes/Sangkat budget preparation.
Budget preparation
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