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Mongolia Trims Spending and Moves Reforms to Close 2026 Budget Shortfall

A Cabinet savings regime that spares health will be followed by a 2026 budget amendment submitted together with the 2027 budget.

Overview

  • The government has put a temporary financial‑savings regime in place that narrows discretionary spending but explicitly exempts the health sector and essential child‑health programs.
  • Finance Minister Z. Mendsaikhan said a 2026 budget amendment will be prepared and submitted with the 2027 budget in September to address a mid‑year shortfall driven by early receipt of 2026 revenues and one‑off wage adjustments.
  • The Justice Ministry presented a draft law to let courts seize assets tied to corruption and direct recovered funds to social projects, and officials are developing a public digital housing registry to prevent developer fraud and speed restitution for victims.
  • Police and child‑protection agencies published H1 crime figures showing 187 rape cases against minors and launched the nationwide 'Бүү бас' prevention campaign across 21 provinces and 9 districts with joint patrols and public messaging.
  • City infrastructure work continues with engineering on a New Ring Road to ease traffic, planning for a 34 MW waste‑to‑energy plant at Moringiin Davaa, bridge resurfacing, and plans to stockpile about 80,000 tonnes of coal and operate 435 fuel sales points for the winter heating season.