Cambodian state pay to jump under higher 2011 budget

via CAAI

18 Oct 2010

Source: Reuters

By Prak Chan Thul

PHNOM PENH, Oct 18 (Reuters) - The Cambodian government has drawn up a $2.4 billion budget for 2011, 17 percent higher than this year's, and some of the extra money will go towards a 20 percent pay rise for civil servants and the military, officials said on Monday.

Prime Minister Hun Sen said the increase in the budget would go mainly to the education and health sectors, and to fund the pay rise.

Phay Siphan, secretary of state at the Council of Ministers, told Reuters that details would be published when the budget goes to parliament for approval this week.

"All the increases are due to many factors, such as inflation, a 20 percent salary rise for civil servants, and army reform, which includes training and providing additional equipment," Phay Siphan said.

Phay Siphan said another priority was infrastructure to help farmers. "We will invest in road infrastructure, irrigation and rice seeding," he said.

Cheam Yeap, the chairman of parliament's finance commission, said the government was targetting spending of almost $300 million on the military next year, which he described as a small increase over this year.

The 2010 budget was set at $1.97 billion, of which $274 million was earmarked for defence and security spending.

The International Monetary Fund has criticised the high level of military spending in the past and it could again be a bone of contention with international aid donors, who contribute a large proportion of Cambodia's state budget.

In June, donors promised Cambodia $1.1 billion in aid for 2010, up from pledges of $990 million for 2009. [ID:nSGE6520E0] (Editing by Alan Raybould)