During its regular session on August 5, the Cabinet has approved a resolution ordering fiscal discipline, budget prioritization, and fund management across government organizations.

Under the resolution, key social and operational expenses will remain fully funded. These include civil service salaries, one-time retirement benefits, local allowances, pensions, child money allowances, and all social welfare programs.

Additionally, funding will proceed as normal for operational repairs and costs for schools and educational institutions, government internet and utility bills, law enforcement and security force transportation, fuel, domestic travel, meal allowances, and uniform expenses. Expenses related to the COP17 international conference, government debt payments, and local emergency reserves will also be maintained.

However, the government has banned non-essential conferences, anniversaries, public celebrations, and cultural events unless privately funded. Foreign travel—excluding pre-approved high-level visits—guest receptions, non-essential equipment purchases, non-military training, public relations media spending, and non-mandatory bonuses are also prohibited.

The austerity period will remain in effect through December 31, 2026.

Prime Minister Uchral Nyam-Osor clarified that the health sector is exempt from the restrictions. Essential health initiatives, including early screening for students, vaccinations, and seasonal flu prevention, will proceed as scheduled.

All chief budget governors have been directed to cut operating expenses by 20% within their departments. Additional mandates include freezing new hiring, canceling team-building trips, prohibiting new government positions, conserving power and heating, transitioning meetings online, and allowing remote work on select days.

The restrictions will be gradually eased once fiscal discipline improves and conditions normalize.

Published Date:2026-08-07