The Integrated National Financing Framework (INFF) to Catalyze Blended Finance for Transformative CSDG Achievement

The Joint Programme utilizes the global Integrated National Financing Framework (INFF) concept as a template for building arrangements to explore new sources and maximize existing sources of finance to accelerate CSDGs achievement. This will be achieved by the development of three facilities:

1. Establishment of an evidence base on finance sources;
2. Policy and technical advisory; and
3. Data for performance-based budgeting (PBB) and CSDG resource tracking.

These three facilities, in combination, will help build a conducive environment that enables the Royal Government of Cambodia to transition to better prioritizing and targeting investments towards the Rectangular Strategies and CSDG targets using innovative financing solutions.

The expected outcome of the joint programme is an improved financing framework (based on INFF standards) will be formed by building on and linking to existing policy inputs and structures with the aim of providing transformational solutions to CSDG financing challenges.

Critical outputs of the JP are: a publication of an updated Development Finance Assessment, a series of deep-dive studies into regulatory and policy changes, innovations in capital flows, the linking of CSDG targets and data to Budget Strategic Plans (BSP) including the plugging of data gaps, and developing new instruments to monitor the progress of the CSDG financing.

Key activities to be accomplished by UNDP include: Tax Inspectors Without Borders placements with the General Department of Taxation (GDT), diagnostic and technical advisory/ policy inputs to support Khmer Riel bond issuance, enabling establishment of Cambodia Impact Fund, diagnostic study to maximize remittances flows by improving cross border transfers within ASEAN, and reviewing of national Chart of Account (CoA) and proposing a mechanism for policy/CSDG budget tagging. For UNCDF, key activities include: deep-dive study on boosting public revenues, debt financing, leveraging private and blended finance, and remittances.

Implementing Partners: Ministry of Economy and Finance (MEF), National Bank of Cambodia (NBC), Ministry of Planning (MOP), and Council for the Development of Cambodia (CDC)