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Economy

Mongolia’s ruling caucus cuts 2027 spending lines by 10 to 20 percent

The Mongolian People’s Party caucus in the State Great Khural discussed the 2027 draft budget on Monday and heard that the government is withdrawing the investments planned with ₮2 trillion of the Oyu Tolgoi dividend, Montsame reported. To pay for livestock vaccines, energy and school and hospital equipment, current and capital spending in the draft will be cut by 10 to 20 percent.

Tailor's scissors cutting along a chalk line on slate-blue cloth on a sand-coloured table, an amber pin lying beside the cut.

The government is taking back the investments to be made with the ₮2 trillion after collecting citizens’ views, the caucus was told, and the 2027 budget will change accordingly. Current and capital spending in the draft already submitted will be cut by 10 to 20 percent to pay for livestock vaccines, energy and school and hospital equipment, Montsame wrote in its Mongolian text. The caucus also heard a report from the parliament’s ethics subcommittee, presented by the MP B. Kherlen.

The cut follows the government’s retreat of last week. On 23 October it withdrew the one-off bill that would have spent ₮2 trillion of the expected ₮3 trillion dividend, citing a poll on the e-Mongolia platform, and on 24 October Prime Minister N. Uchral said the dividend would be accumulated in the Savings Fund in line with citizens’ views.

Current and capital spending in the draft already submitted will be cut by 10 to 20 percent to pay for livestock vaccines, energy and school and hospital equipment, Montsame wrote in its Mongolian text.

What the caucus now faces is the arithmetic the poll created. The ₮2 trillion has moved from the investment lines of the 2027 draft into the Savings Fund, and the vaccines, energy repairs and equipment it was to buy have to come out of the lines that remain.

Which lines carry the 10 percent and which the 20 will show in the draft that goes to the chamber.