Mongolia’s Budget Hole Is Too Deep for Tax Relief

Tax cuts are tempting politics. But in Mongolia’s current fiscal state, they are misguided economics. With inflation still pinching households and growth losing steam, the public yearns for relief. Yet the government, peering into a widening budget hole, must hold the line.

https://tradingeconomics.com/mongolia/government-budget-value Mongolia’s monthly budget balance flipped into deficit in late 2024, underscoring the country’s worsening fiscal position

The math is brutal. The economy is growing too slowly, the tax base is too shallow, and the country remains too vulnerable to the whims of commodity markets to indulge in fiscal largesse. The only responsible option is to cut.

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