Uchral Nyam-Osor, Prime Minister and Member of Parliament and Minister of Finance Mendsaikhan Zagdjav, on August 31 submitted to Byambatsogt Sandag, Chairman of the State Great Khural, draft amendments to the Law on the Budget Framework Statement of Mongolia for 2027 and Budget Projections for 2028-2029, as well as draft laws on the 2027 State Budget, the 2027 Future Heritage Fund Budget, the 2027 Social Insurance Fund Budget, and the 2027 Health Insurance Fund Budget, together with related draft legislation.

The draft amendments to the Budget Framework Statement for 2027 and Budget Projections for 2028-2029 set the general government adjusted revenue at MNT 41.3 trillion, expenditure at MNT 43.6 trillion, and the deficit at MNT 2.306 trillion for 2027.

Prime Minister Uchral said the Government had made nine key decisions within the proposed budget framework.

“We will ensure that the benefits of natural resources are distributed equitably among citizens. We are focusing on supporting small and medium-sized enterprises and the private sector, and revitalizing the economy. Mongolia is set to receive dividends from the Oyu Tolgoi project for the first time. These funds will be used to reduce our dependence on fuel and energy. For instance, we will construct a 300-megawatt Thermal Power Plant No. 6 adjacent to Thermal Power Plant No. 3 and complete the construction of thermal power plants in 10 aimags. Part of the funds will also be allocated to the Savings Fund and used for healthcare and housing,” he said.

Speaker Byambatsogt noted that Mongolia’s first dividend payments from the Oyu Tolgoi project would provide additional resources to be allocated for citizens.

Key figures and measures in the proposed 2027 State Budget include:

Improve the governance and profitability of state-owned enterprises. Dividend revenues of MNT 3.5 trillion are projected to be transferred to the state budget in 2027.
Increase basic pensions for senior citizens by MNT 100,000–300,000.
Fully exempt senior citizens, children, persons with disabilities and low-income citizens from co-payments for medicines for hypertension, cardiovascular diseases and diabetes, thereby protecting their incomes.
Increase the salaries of employees across all public services.
Exempt monthly wage income of up to MNT 792,000 from income tax, reducing the tax burden on citizens by MNT 840 billion.
As part of social insurance reform, exempt citizens from MNT 186.3 billion in social insurance contributions. Students aged 18–24 who are employed will be exempt from social insurance contributions. Employers of start-up businesses will be exempt from social insurance contributions for up to three employees for 36 months. Individuals holding multiple jobs will be allowed to choose one job from which to pay social insurance contributions.
Provide approximately 16,000 citizens with access to housing through concessional loans, co-ownership and rent-to-own arrangements.
Introduce a “One Child–One Computer, One Classroom–One Smart Board” program.
Connect 100 general education schools to renewable energy systems, reduce heat loss and upgrade them with modern technological solutions to develop them into “Green Schools.”
Under the “Green Exemption” initiative, exempt renewable energy equipment, solar panels, energy storage systems, charging stations, and electric-powered vehicles and machinery from customs duties and excise taxes.
Establish 500 electric vehicle charging stations.
The draft legislation incorporates the following fiscal requirements:

Adjusted revenue: Adjusted prices for key mineral commodities were calculated based on price forecasts issued by international financial information institutions, taking into account key macroeconomic indicators and export projections, and used to determine adjusted revenue.

General government adjusted balance: The adjusted balance is projected to have a deficit of no more than 2 percent of GDP, or to be in surplus, thereby meeting the fiscal requirements.

Growth in total general government expenditure: Total expenditure is to be planned in line with underlying economic growth and will not exceed the higher of the current year’s non-mineral GDP growth rate or the average non-mineral GDP growth rate over the preceding 12 consecutive years. For 2027, however, this fiscal requirement will not apply, as the ceiling on total general government expenditure will be increased by the amount of additional revenue. The fiscal requirement will be applied in 2028–2029.

Government debt: The nominal outstanding balance of government debt is projected not to exceed 50 percent of GDP at current prices in 2027–2028 and 45 percent in 2029. This remains below the statutory ceiling under Article 6 of the Fiscal Stability Law, which requires the nominal outstanding government debt balance not to exceed 60 percent of GDP at current prices.

Published Date:2026-09-01