A budget of 926 million US dollars for 2006 was approved by the Cambodian National Assembly on Friday, local newspaper The Cambodia Daily reported on Saturday.

The budget, 20 percent higher than the 772 million dollars in expenditure approved for 2005, was passed by the assembly vote of 84 to 12. The budget forecasts 683 million dollars to be raised in tax revenue. To fill the deficit the assembly approved financing of 243 million dollars in the form of grants and loans.

Addressing the assembly, Finance Minister Keat Chhon emphasized plans to increase spending on irrigation in the 2006 budget. He said the government will have 255 million dollars for irrigation.

Keat Chhon said that this year's projected 20 percent increase in rice yields was due to investment in irrigation projects. Keat Chhon also announced extensions on tax holidays for large investments.

The minister, meanwhile, forecasted that Cambodia will have a 6. 1 percent economic growth in 2006, less than this year's 7 percent, due to the affection of the continuing rise of the commodity price on the international markets, especially the petroleum, the Jian Hua Daily newspaper reported.

Source: Xinhua