Budget priorities include avoiding default on international debt and consolidating all government spending, including items that have previously been off-budget, into one budget to enhance transparency and improve management. Mongolia’s budget deficit through the first seven months of this year increased 32.6% over the period a year ago, according to the National Statistical Office. The new government will soon unveil its plan for a Council for the Protection of Investor, which will report directly to the Prime Minister, and states it will also move to reform current policies on use of exit visa denial.

Mongolia is now engaging with the International Monetary Fund and some other financial institutions. With only US$1.3 billion in foreign reserves and more than $1 billion in bond repayments coming due within 16 months, Mongolia is running out of time to bolster reserves. Foreign Minister Ts. Munkh-Orgil said this week that for the next two years, Mongolia will focus on finishing existing projects such as half-built schools, hospitals and roads, without starting new projects. The government has also proposed higher income taxes for people earning more than 2.5 million MNT per month, in place of the current flat tax, taxes on interest earned on bank deposits, excise duties on luxury and high-powered cars, and higher taxes on alcohol and tobacco, but also tax breaks for SMEs