On November 14, 2024, Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai reviewed the detailed report on budgetary and tax policies during his visit to the Ministry of Finance of Mongolia and the General Department of Taxation.

Minister of Finance of Mongolia Javkhlan Bold presented that in the 16-year period from 2005 to 2021, the budget revenue of Mongolia amounted to MNT 99.9 trillion, whereas in the last three years, it has reached MNT 110.4 trillion.

Exports amounted to USD 78.4 billion in 2005-2021, while in 2022-2025, it is estimated to reach USD 63.3 billion.

Moreover, GDP per capita is projected to double from USD 4,657 in 2021 to USD 8,000 in 2025. Finance Minister Javkhlan stated that due to optimal debt management, the burden of foreign debt has decreased. At the same time, the Ministry is currently formulating three options to reduce expenditures for the 2025 State Budget.

Prime Minister Oyun-Erdene Luvsannamsrai underscored, “The 2025 State Budget is the first budget approved by the new Parliament, consisting of 126 members elected through a mixed electoral system. Therefore, it mainly focuses on regional development, shifting away from the traditional approach of evenly dividing budget allocations into electoral districts. A number of Members of Parliament criticized the previous practice of raising budget allocations in the constituencies and called for reduced expenditures, which is a positive outcome of the new system. Moreover, the issues sparking public criticism concerning the 2025 State Budget should be addressed, and a draft budget adjustment is required. We must focus on adopting a deficit-free budget.”

Given that mining, particularly coal, is the main source of Mongolia’s economy, the Premier highlighted the global shift away from coal and towards a green economy, urging the Government to prepare in advance for a possible reduction in coal exports.