A joint meeting of government members, chairpersons of aimags, Citizens' Representatives Khural of the Capital City, and governors was held at the State Palace to present the government’s 2026 policies and objectives, aiming to ensure a unified direction and common understanding with local authorities.
Local leaders are those who translate government policy into practice and deliver it to citizens. Therefore, Prime Minister Zandanshatar Gombojav gave a detailed presentation on the government’s policies and reforms in his report titled “One Mongolia - One Direction: Order and Reform Movement.” The prime minister said that when the government was formed six months ago, it faced numerous urgent national challenges: state capacity had weakened, public trust in government had declined, economic growth had fallen by half to 2.6 percent, foreign exchange reserves had dropped sharply, the US dollar exchange rate had risen steeply, inflation had exceeded 15 percent, and there was a real risk of a budget revenue shortfall of MNT 3.3 trillion. Theft and fraud had emerged in companies owned by the people. He said this was a time when order in the state and a reform movement were urgently needed, as he noted ahead of his “One Mongolia - One Direction: Order and Reform Movement” report.
An emergency regime was imposed at “Erdenes Tavan Tolgoi” JSC for three months starting in July, increasing coal production and sales by 1.6 times. As a result, the country’s foreign exchange reserves increased by USD 2 billion in just three to four months, helping revive the economy. Once fiscal discipline, order, and foreign trade policy began moving in the right direction, tangible results started to appear. The revived economy now needs to be steered correctly going forward. To this end, the government has put forward policy goals to build new public confidence and implement radical governance reform. The State Great Khural has approved the five-year basic development directions for 2026–2030.
The eight main directions to comprehensively reform the country are:
Human development reform
Economic structure reform
Values and social development reform
Environment and green development reform
Governance and digital development reform
National competitiveness reform
Regional development reform
Science, technology, and artificial intelligence reform.
The government has also approved and begun implementing, from the start of the year, the “300-Day Action Plan” aimed at delivering economic growth to citizens. During these 300 days, local authorities must work proactively to ensure that economic growth reaches citizens, practically launch the accumulation and expenditure of the National Wealth Fund, and turn fair distribution of wealth into concrete action. Only if the state itself becomes orderly and disciplined, he said, can this opportunity turn into real development.
In his report, the PM also detailed the 2025 performance, 2026 targets, and five-year policy objectives, and said, “For the economy to grow, it is not enough for business alone to be free. The state itself must be orderly, frugal, responsible, and under oversight. Therefore, the next major package of the plan is reform to put the state in order from within.” Within this framework, more than 1,000 regulations and rules that are unlawful and that create bureaucracy and delays will be abolished, he said.
The Prime Minister advised aimag and local leaders to work closer to real life and to citizens and stressed that they must play a major role in implementing government policy. He also expressed his position on several issues repeatedly raised by local leaders.
He instructed sector ministers to amend laws that have created excessive centralization of authority, to grant local governments the right to manage budget savings, and to devolve powers by transferring to local levels agencies whose issues do not need to be decided in Ulaanbaatar. The practice of the Ministry of Finance withholding excess tax revenues and affecting the fiscal autonomy of local budgets must be stopped. He said work will continue to establish a legal framework that guarantees local financial authority.
He said the issue of merging the Soum Development Fund into the Cooperative Development Fund, which blocked opportunities for small and medium-sized enterprises to receive concessional loans, will be studied and relevant regulations amended. Although amendments to the Law on Land were mandated after the government was formed to resolve the allocation of ownership and possession of land for soum and residents, as well as herders’ winter and spring camps, the issue remains unresolved to date. He therefore warned that this matter must be resolved urgently.
After his report, the Prime Minister said, “2026 will be a year of new confidence, radical reform, and real change. More responsibility and more tangible results are demanded of us. The government will work to increase and grow national wealth and to prove the goal of ‘Mongolians, masters of their wealth’ not with words but with deeds, not with promises but with results.”
The meeting provides unified guidance for ministries, aimags, and Citizens' Representatives Khural of the Capital City and Governors on implementing the Government of Mongolia’s 2024–2028 Action Program, the Basic Development Directions of Mongolia for 2026–2030, the Annual Development Plan, and the 2026 Budget Law, and government members will sign performance agreements with aimag and Capital City Governors.

Published Date:2026-01-16