Prime Minister G.Zandanshatar delivered a keynote address at the plenary session of parliament, presenting his "Savers Statement", a formal policy declaration outlining urgent government measures to reduce public spending alongside a proposed amendment to the 2025 state budget. In his address, the premier warned of a significant fiscal shortfall driven by a sharp decline in coal prices, which could reduce national budget revenues by as much as 3.2 trillion MNT.
“This is not just a temporary concern, it’s a worsening situation,” said G.Zandanshatar. “If we do not act quickly to revise the budget and reduce high-import investments, we risk triggering higher inflation, weakening the MNT, and threatening the financial stability of our citizens, businesses, and economic producers.”
Citing data from an international study, the prime minister highlighted that an one percent increase in inflation could push an additional 24,000 Mongolians into poverty, a stark warning about the potential social impact of unchecked economic pressures.
When the original 2025 budget was approved, coal prices were projected at 105 USD per ton. However, with slowing industrial demand in China, prices have plummeted to around 70 USD per ton, with forecasts suggesting this level may persist for the next one to two years. In response, the government is adopting what G.Zandanshatar called a policy of "Strengthening the State Independently."
The "Savers Statement" lays out a series of cost-saving measures across all levels of government, aiming to freeze or cut non-essential spending. These include suspending plans to raise fuel and heating costs for budget-funded institutions, cutting 28.9 billion MNT from transport, fuel, business travel, and education production costs, reducing foreign delegation and hosting expenses by 4.5 billion MNT, and excluding top-level state visits, halting routine maintenance and equipment purchases, saving 104.4 billion MNT. The measures further include withdrawing 76.8 billion MNT in subsidies to both state and private organizations, eliminating 30.2 billion MNT in one-time bonuses and incentives, and canceling or downsizing numerous public programs and events, saving 617.3 billion MNT.
In total, these measures are expected to reduce expenditures by 1.51 trillion MNT. Additionally, under a recent resolution titled “Budget Savings,” the government will stop financing procurement projects not yet under contract, yielding a further 535.9 billion MNT in savings. Combined, the government aims to trim total budget spending by 2.04 trillion MNT.
According to the revised proposal, the consolidated budget’s revenue will decrease by 3.26 trillion MNT, while expenditures will fall by 1.86 trillion MNT. This results in a budget deficit of 1.36 trillion MNT, equivalent to 1.5 percent of Mongolia’s GDP, a figure that remains within the parameters of the Law on Budget Stability.
Prime Minister G.Zandanshatar concluded by emphasizing that these changes are necessary to maintain financial stability, protect vulnerable households, and reinforce the nation’s economic independence in uncertain global conditions.

Published Date:2025-06-30