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Parliament Weighs Budget Risks From Mining Disputes as Central Bank Keeps Rate at 12%

Finance Minister warns a court loss in the Oyu Tolgoi tax case could require repaying ₮1 trillion already spent.

Overview

  • Lawmakers opened debate on the 2026 budget, with Finance Minister B. Javkhlan saying state worker salaries will not rise next year while pensions will increase 6% (≈₮378 billion).
  • Javkhlan told Parliament that arbitration over Oyu Tolgoi’s tax dispute is underway in London and that a ruling against Mongolia would create a liability to return the ₮1 trillion collected during the pandemic.
  • The Bank of Mongolia left its policy rate unchanged at 12% after meetings on Sept. 15–16, citing August annual inflation of 8.8% nationwide and 9.8% in Ulaanbaatar.
  • The Cabinet Secretariat chief rejected former president N. Enkhbayar’s claim of a $10 billion loss from the Gashuunsukhait–Gantsmod rail agreement, calling it his personal view and saying the pact remains in force.
  • Parliament’s Budget Standing Committee voted to accept the President’s partial veto on the “Alt-3” resolution, signaling adjustments to the gold sector policy framework.