The system faced critical challenges, such as a poorly designed budgetary system and inadequate domestic revenue but is now on track, local media reported.

Ellen Goldstein, World Bank country director for Cambodia, Myanmar and Laos, said: “Through the reform efforts by the government of Cambodia, Cambodia PFM systems have been substantially strengthened, particularly at the central level.”

She added that the country has had “notable successes” including a “remarkable revenue collection performance”, the elimination of payment arrears going back to 2007, improved budgetary processes with “smooth implementation of the budget formulation cycle and the implementation of a financial information management system (FMIS)”.

FMIS is fully operational in Cambodia’s central offices of the Ministry of Economy and Finance and all provincial treasuries to support payments and accurate of financial reporting.

The public finance management system is organised using a “platform approach” and is being implemented in stages, the Khmer Times reported.  

Earlier this year, the IMF warned Cambodia to invest more in infrastructure and good governance to continue its economic success.