World Bank’s Equity and Development Report 2007.
IMF policies prevent lending in the presence of arrears to official creditors, see IMF Country Report 06/265, Chapter V for further details.
Supplement 1 details the latest joint Fund/Bank staff Debt Sustainability Analysis. Stress tests show that less prudent fiscal policies than assumed in the baseline do not significantly threaten debt sustainability.
Basic civil service salaries are so low ($30/month) that a whole system of absentees, ghost workers, multiple jobs, and bribery has unfortunately evolved.
See chapter V of the Selected Issues paper for detail on the structure of the tax system.
Base salaries are only around half of total remuneration with functional and other allowances playing a major role for many public servants. The pay increase will cost less than 0.1 percent of GDP in 2007 and 2008.
The full value of debt relief showed in 2006 revenue. Budgeted spending for 2007 on irrigation is US$11million but may fall short of this target.
The dramatic changes to Cambodia’s economy in recent years preclude estimation of an equilibrium exchange rate.
These small sales took place recently through auctions conducted with the aim of testing market conditions.