Comparison between the US government structure with Cambodian

2. Please compare the US government structure with Cambodian. In what way(s) Cambodian public spending is different? Where does the Cambodian Government spend most? Please, if possible, show the outlays by categories such as Education (%), Healthcare (%). and etc. in graphs & pie charts.

Answer:

-Compare the US government structure with Cambodian:

Cambodia government structure is multiparty democracy under a constitutional monarchy.

§  Source: http://www.state.gov/r/pa/ei/bgn/2732.htm

US government structure is divided in three branches; The Legislative, the Executive and the Judicial branch.

§  Source: http://www.theusgov.com/

-Cambodia public spending separate in many kind including the spending for entertainment (garden, playground), education (school), religion (pagoda), infrastructure (bridge, street), or medicare (hospital).

The following figure below show the difference between US federal government and state & local expenditures.

§  Source: Budget of US government

            As seen in both pie charts, there is a difference between US federal government and state local spending. For the first one US federal spend most on national defense and social security meaning that US federal consider security as the first priority. Likewise, state local spending spend most on education and other, hence it show us that state local care more about education than any others.

-Cambodia government expenditure

 

§  Source: http://mef.gov.kh/tofe

            As shown in pie chart, Cambodia spend 44% most on core government that show us that the maximum percentage in the whole spending. This core government includes general administration, defense, security, and judiciary. The second maximum percentage is social services, which contain 32% in government whole spending. Basically, it includes health, recreation, culture & religion, education, and social protection. The third one is spend on 12% of economic service, which include agriculture, transport, public works, other transport, other economic services, and environmental protection. Another spending of Cambodia government is 8% on other and finally 4% on rural development.

            In conclusion, we can see that Cambodia spend most on core government which mean that Cambodia pay attention to social security as the important one because now Cambodia has attracted many tourist so we need a high security to protect. Additionally, Cambodia now has increase many crime and violence that why government spend most on it. The second one is social service that includes the main thing such as health, education, culture, and religion. Not only Cambodia but also the other country which also pays attention to this social service because without it country cannot grow fast and surely will face a lot of trouble.

3. a.  What are the main sources of income/revenues of the Cambodian Government? Are they foreign aid, loans and grants, taxes, or user charges? Please explain in detail. 

b. According to Law on Taxation of Cambodia, what type of taxes each and every citizen is required to pay (personal, corporate income taxes, property, sales taxes. etc.)?

c. What type of taxation system does the Cambodian Government apply (proportional, progressive or regressive)?

Answer:         

a. The main source of income/revenues of the Cambodia government is the foreign aid because Cambodia receives a strong support from international support under the mandate carried out by the United Nations Transitional Authority in Cambodia (UNTAC) which includes security, stability and democratic rule to the country. Why? Because Cambodia now is still one of the poorest so we need help from the other country and our country receive many helps from foreign country.

§  Source: http://chethtrade.wordpress.com/category/economy/foreign-aid/

b. According to law of taxation of Cambodia, each and every citizen requires and not requires to pay:

·     -Property tax like land, house or brand name of their business etc. They have to pay 10% for their every year to the government depends on what government is set to be.

·   -Even for unused property like house or land that they don’t use, they still pay the tax 2% to government for their house or land that they have bought.

·      -Corporate income taxes, it can be pay a half by stockholder and a half from investor from their dividend to government

·      -Transportation tax such as car and motorbike all citizens require to pay tax of their transportation every year to the government.

·     -But for personal income they don’t need to pay because of their salary. Before company or government pays them their salary, their salary could include the tax already so they no need to pay for this tax.

·      -Also for sale tax, all citizen or consumers don’t need to pay for this tax because these taxes are tax from 0% - 10% already on the product before they sell to consumer therefore sometimes the price of goods could be increase because of sale tax.

c. Taxation system that Cambodian governments apply is progressive tax between          0%-20% because when an income increases, tax also increase.

§  Source: http://www.tax.gov.kh/