Mongolia’s Budget Amendment Remains Stalled as 2027 Plans Take Shape

Mongolia’s 2026 budget amendment remains unapproved nearly eight weeks after its submission on 20 August. Some proposed measures, including a base pension increase and a pay rise for civil servants, are intended to take effect on 1 November. With that date fast approaching, the ruling Mongolian People’s Party (MPP), which holds 68 of Parliament’s 126 seats, has called for the amendment to be approved by 20 October. 

Parliament is also reviewing the 2027 budget alongside the amendment, with next year’s fiscal calculations reportedly based on the proposed revisions to the current year’s budget. Given the urgency, both in implementation timing and in fiscal consistency across two budgets, why is the amendment still unapproved?  

The Budget Amendment in Context

The government cited rising prices, fuel and electricity disruptions, and falling revenue as reasons for the amendment. Prime Minister N. Uchral reported that revenue was MNT 1.4 trillion below plan, while the deficit had reached MNT 2.2 trillion by July, twice the approved amount. 

In response, under its “UNLOCK” (Чөлөөлье) initiative, the government proposes saving MNT 1.4 trillion, including MNT 249.5 billion from capital expenditure, to redirect spending towards household support and essential services. The main priorities include education-sector pay arrears, public-sector pay rises, and pension increases from November, alongside energy support and reserves of wheat, vegetables and fuel. 

The amendment also allows the government to use MNT 998 billion from accumulated local budget surpluses, increasing total spending and the deficit by the same amount.