Mongolia Budget Breaks the Fiscal Rules. Parliament Rewrites Them.

Mongolia’s draft 2027 budget spends ₮43.6tn (USD 12.1bn), ₮7.1tn (USD 2bn) or 19.4 percent above the ceiling parliament set in May. The National Audit Office, an arm of the state, has attacked it hardest. Parliament’s answer is to rewrite the limits.

Photo by Altai Baatarkhuu on Unsplash

The 2026 pay rise costs ₮1.7tn (USD 472m) on a full-year basis and pensions and benefits add ₮2.7tn (USD 750m), pushing recurrent spending to ₮33.6tn (USD 9.3bn), 77.5 percent of the total.

Debt service of ₮5.99tn (USD 1.7bn) exceeds capital investment of ₮5.77tn (USD 1.6bn).

And ₮6.9tn (USD 1.9bn) across 34 programmes has no measured outcomes. The Fiscal Stability Council piled on, with debt up from 39.4 to 49.6 percent of GDP. Economists agree, one calling the budget oil on the inflation fire.

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