As Cambodia prepares its 2027 national budget, Prime Minister Hun Manet has moved to reassure the public that education and healthcare remain among the government’s top priorities. Speaking in Phnom Penh on June 1, 2026, the Prime Minister firmly rejected reports suggesting that the Royal Government intends to reduce spending on education and health services to increase defence funding. The clarification came in response to a report by Radio France Internationale that cited preliminary budget figures and raised concerns about future spending priorities.
According to Hun Manet, the claims were based on a misunderstanding of the budget planning process and failed to reflect the government’s final spending decisions. He stressed that Cambodia has sufficient financial resources to support key sectors simultaneously, including national defence, security, education, healthcare, and social welfare. The Prime Minister’s remarks aimed to address growing public scrutiny over government spending as the country balances economic development, social investment, and evolving security challenges.
Government Says Budget Comparisons Were Misleading
The controversy began after government circulars related to the preparation of Cambodia’s 2027 to 2029 budget strategy plan were made public. Some observers interpreted the preliminary figures as evidence that social sector funding would be reduced while defence spending would increase.
However, Hun Manet argued that such conclusions were inaccurate because they compared preliminary planning figures for 2027 with final approved allocations from 2026. He said the comparison ignored the normal budget negotiation process that takes place before final figures are approved.
“They are using two different sets of figures for comparison,” Mr Hun Manet said. “If you want the actual figures, please refer to those officially approved in the budget law.”
The Prime Minister also criticized the methodology behind the report, describing it as equivalent to “comparing a cow with a buffalo,” a Cambodian expression used when comparing unrelated things.
Understanding Cambodia’s Budget Process
Hun Manet explained that the figures cited in the government circulars represent only the starting point of the annual budget preparation process. Every year, the Ministry of Economy and Finance issues preliminary budget ceilings to ministries and government institutions before negotiations begin.
These initial figures exclude completed programmes, pilot projects, and certain nonessential expenditures to improve budget efficiency. Ministries then submit additional funding requests based on unfinished projects, new initiatives, and policy priorities.
“In the first stage, MEF issues preliminary figures for negotiations. These are based on the annual activities of ministries and institutions and exclude programmes completed in 2026, as well as certain non-essential and pilot expenditures to ensure budget efficiency,” he said.
The Prime Minister noted that allocations often increase during negotiations as ministries justify their funding requirements.
“If the initial figure is 100, it can increase to 105 after negotiations,” he said.
Education and Healthcare Remain Top Priorities
Despite growing regional security concerns and increased defence requirements, Hun Manet insisted that investment in human development remains central to Cambodia’s long term strategy. He pointed to the country’s major development frameworks, including the Triangular Strategy, Rectangular Strategy, and Pentagonal Strategy, all of which place human resource development at the center of national progress.
“The Royal Government has sufficient budget to increase spending for important sectors, including national defence, national security, education, health and social affairs,” he said. “There is no plan to reduce education and health spending in order to support defence needs.”
The Prime Minister emphasized that strengthening education and healthcare systems remains essential for Cambodia’s future competitiveness and economic growth.
Spending Trends Show Continued Growth
To support his argument, Hun Manet presented spending figures from recent years. Between 2024 and 2026, government spending on social sectors increased by approximately $2.6 billion, representing average annual growth of seven percent.
During the same period, spending on defence, security, and public order increased by about $1.1 billion, or an average annual growth rate of 3.3 percent. These figures, he said, demonstrate that social sectors continue to receive significantly larger allocations than defence related expenditures.
“Despite tensions in 2025 that required higher defence spending, allocations for education and health have not declined and are projected to increase further in 2027,” he said.
“Over the past three years, spending on education and health has remained significantly higher than defence and security,” Mr Hun Manet said. “This shows the actual priority of the Royal Government, which is to strengthen human resources. It remains the largest budget allocation and will continue to be the priority despite ongoing conflicts.”
Balancing Development and Security Needs
Cambodia, like many countries, faces the challenge of balancing economic development, social welfare, and national security. While defence spending may rise in response to regional tensions and security concerns, government leaders insist that such increases will not come at the expense of essential public services.
The Prime Minister’s clarification seeks to reassure citizens, educators, healthcare workers, and development partners that the country’s commitment to human capital development remains unchanged. As budget discussions continue, the government maintains that education and healthcare will remain at the heart of Cambodia’s long term development agenda.
Conclusion
Hun Manet’s response to the budget controversy highlights the importance of understanding Cambodia’s budget planning process before drawing conclusions from preliminary figures. While defence spending may increase in the coming years due to evolving security needs, the government insists that education and healthcare remain its highest priorities. Backed by recent spending data and long term development strategies, the Prime Minister argues that investment in human resources will continue to receive the largest share of national resources as Cambodia works toward sustainable growth and prosperity.