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Volume 482: debated on Wednesday 12 November 2008

To ask the Secretary of State for International Development what assessment he has made of the effectiveness of the public financial management reform programme in Cambodia. (233802)

The Department for International Development (DFID) participates annually in the joint Government-donor review of the public financial management reform programme, with the most recent taking place in May 2008. Issues relating to public financial management also form part of the IMF's Article IV consultations and are a central feature of policy dialogue with budget support donors. These require regular reporting from Government and ongoing monitoring by development partners, including DFID.

Since 2005, reform of public financial management has already delivered significant improvements in terms of revenue management and budget credibility. Tax revenues continue to grow, with a 37 per cent. increase during the first three quarters of 2008 compared to the same period in 2007; revenue out-turn up to September 2008 is 99 per cent. of budget forecast (compared to 85 per cent. in 2007); and Government have spent 72 per cent. of their budget in the first three quarters of 2008 (compared to 62 per cent. in 2007). In December, the Government will launch a second phase of the programme. This will build on these successes and provide additional focus to financial management in line ministries. It will also address outstanding issues from the first phase, including the integration of recurrent and capital budgets, and strengthen the links between planning, budgeting and expenditure.