Description

Cambodia faces substantial additional spending needs—estimated at about 9.3 percent of GDP annually—to advance selected SDGs in health, education, and infrastructure. The analysis shows that no single policy instrument is sufficient: stronger domestic revenue mobilization can reduce the remaining spending gap by about half by 2040, while improvements in spending efficiency can substantially strengthen the growth impact of existing resources. A joint strategy combining moderate revenue mobilization, efficiency reforms, and selective borrowing accelerates progress and generates the largest growth dividend, but rising debt-service costs progressively reduce the fiscal space available for SDG spending. The results therefore point to a balanced approach that combines sustained revenue reforms, better spending quality, prudent and well-targeted borrowing, and greater private-sector participation.

More publications in this series: Selected Issues Papers