Why Mongolia’s Economy Is Growing Faster Than Its Tax Base
7 minutes ago
3 min read
Despite a 7.6% GDP expansion, Mongolia faces a MNT 2.2 trillion ($608 million) budget shortfall in 2026, forcing parliament to revise spending as broad tax revenues fail to match mining growth.
The problem is not a collapse in mining. It is the weakness of the rest of the economy.
The government plans to plug much of the hole by extracting MNT1.6trn ($442m) in dividends from state-owned enterprises and reallocating MNT1.4trn ($387m) in existing spending.
The revised budget puts revenue at MNT31.9trn ($8.82bn) and expenditure at MNT34trn ($9.40bn), leaving a deficit of MNT2trn ($553m), or 2% of GDP.
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