The Royal Government of Cambodia has introduced significant innovations into the Country’s Sub-National finance system. After over two years of preparation, the Law on Financial Regime and Property Management for Sub-national Administrations was approved today by Cambodia’s Council of Ministers. The new legislation is part of the implementation of an ambitious 10-years National Programme for Sub-National Democratic Development which aims at advancing decentralization and fostering local development.
During the two years of technical work and consultations, UNCDF – through its IDLD (Innovations for Decentralization and Local Development Project) – played a key role in supporting government and provided technical advise based on experience in sub-national finance system in other countries.
“The law is an important milestone in Cambodia’s decentralization reform and can contribute to set-up a system that is more transparent, fair and efficient in the allocation of resources across levels of government” explained Nicola Crosta, UNCDF Chief Technical Advisor and representative in Cambodia.
UNCDF has been supporting decentralization in Cambodia for over a decade and contributed to pilot and institutionalize significant innovations such as the Commune/Sangkat Fund now covering all Cambodia’s territory. UNCDF/IDLD project is housed at the National Committee for Sub-National Democratic Development.