EU grants EUR 50.8 million to Mongolia for improving transparency www.news.mn
The European Union is supportig Mongolia’s efforts in boosting employment and improving transparency in public finances with a grant of 50.8 million euros (MNT 155.7 billion). This is the first budget support programme in Mongolia, also aiming to address the social and economic consequences of the COVID-19 pandemic.
The European Union Ambassador to Mongolia, Mr Traian Hristea said: “The Mongolian people can count on the EU’s full support. Today’s assistance package demonstrates the EU’s commitment to Mongolian citizens: budget support in the employment sector is an important stimulus to react to the economic and social impact of COVID-19. Citizens have also demanded a more efficient and transparent public finance policy: this is vital for public trust in the government effectively spending taxpayers’ money.”
Today, May 29, the Ambassador to the European Union to Mongolia, Mr Traian Hristea and the Minister of Finance Mr Khurelbaatar signed the Financing Agreement for the EU Budget Support programme of 50.8 million euros (155.7 billion Tugriks). This programme is planning an upfront disbursement of 16 million euros (49.06 billion Tugriks) to support the efforts of the Government of Mongolia in fighting the social and economic consequences of COVID-19.
The programme will support the Government of Mongolia to implement reforms, notably its Employment Policy and its Public Finance Management (PFM) sectors, including tax reforms. It will help to improve skills for employability, to promote decent work and formal employment, to mobilise domestic resources, to increase spending effectiveness and to strengthen state and non-state actors’ ability to oversee PFM.
The disbursements will happen through fixed and variable tranches complemented with dedicated technical assistance. Over the next 4 years, the EU will disburse a grant of 43.0 million euros. As part of this programme, the EU is partnering with the United Nations Development Programme, the United Nations Food and Agriculture Organization, International Labour Organization and the United Nations Industrial Development Organization to deliver a 7.4 million euro technical assistance project. It will focus on transparency and oversight of the budget as well as employment creation in the non-mining sectors for youth and for persons with disabilities.
It is the first-ever EU Budget Support programme in Mongolia. The Action is a Sector Reform Budget Support on Employment of EUR 50.8 million over four years. It builds upon the achievements of past and ongoing EU projects in the two sectors of the 2014-2020 Multi-annual Indicative Programme (MIP), namely strengthening governance of revenues and improving employment opportunities.
The European Union will work closely with the Ministry of Finance and the Ministry of Labour and Social Protection to monitor closely the progress on the reform implementations. (EU)