Cambodia’s Defence Budget Rise Reflects Modernisation Strategy Without Cutting Social Spending

PHNOM PENH, May 26, 2026 (KPT) — The Cambodian government planned to increase in defence spending for 2027–2029 reflects a long‑term modernisation strategy and will not undermine investment in education or healthcare, according to experts and government officials.

Thong Mengdavid, a lecturer at the Royal University of Phnom Penh, said the higher allocation was necessary to support military reform and modernisation.

“As a small state, Cambodia must be prepared for uncertain developments in an increasingly volatile security environment,” he said, adding that the increase was unlikely to affect other development sectors.

A government circular on the 2027–2029 strategic budget plan shows defence spending will rise to about $900 million. The strategy focuses on improving professionalism, expanding training capacity, strengthening logistics and modernising equipment.

The policy also coincides with the reactivation of conscription, expected to generate costs for recruitment, training facilities, accommodation and operational support.

Geopolitics and International Economics expert Gnel Rattha described the rise as a “strategic evolutionary step” aligned with Cambodia’s long‑term military framework.

He said the expansion would act as a financial catalyst to turn legislative reforms into operational reality.

Rattha pointed to recent government efforts to reduce administrative costs — including the dissolution of 30 departments across 16 ministries — as evidence that fiscal space had been created without cutting social budgets.

He linked the defence strategy to Cambodia’s historical experience and regional security concerns, stressing that sovereignty required both economic resilience and credible deterrence.

He noted Cambodia’s relatively low public debt, estimated at 19% of GDP, gave the government greater flexibility compared with neighbours facing heavier debt burdens.

Finance ministry spokesman Meas Sok Sensan said social spending would continue to rise under the Medium‑Term Budget Framework.

Education and health budgets are projected to increase by 3.4% in 2027, 8.3% in 2028 and 5% in 2029.

Defence and security spending is expected to grow by 11.4% in 2027, followed by smaller increases in subsequent years.

“The increase in defence spending will not reduce the budgets of the Ministry of Education or the Ministry of Health,” Sok Sensan said.