Ulaanbaatar, September 24, 2025 /MONTSAME/. At its Cabinet meeting on September 24, 2025, the Government of Mongolia reviewed the draft of the Five-Year Development Guidelines of Mongolia for 2026-2030. Following the Cabinet session,  Prime Minister Zandanshatar Gombojav and Cabinet members held a press briefing to share updates on the Government's recent actions and future plans.

Prime Minister Zandanshatar announced that under the "New Confidence - Bold Reform" program, the Government plans to implement reforms across ten key areas, including governance, the economy, human development, taxation, green growth, energy, and rural-urban development. The Premier also reflected on the Government’s progress during its first 100 days in office and outlined long-term policy objectives.

In his remarks, the Prime Minister emphasized the difficult geopolitical and economic environment in which the new Cabinet took office. He noted that coal prices—Mongolia’s primary export—had fallen by half, creating a real risk of a MNT 3.3 trillion shortfall in budget revenue. The exchange rate was approaching MNT 4,000 per USD, and inflation was on track to reach 15 percent. Against this backdrop, economic growth had declined to 2.4 percent by the end of the first quarter.

To address the crisis, the Government submitted a revised austerity budget to the State Great Khural within one week of taking office. According to Zandanshatar, this move helped avert a looming crisis and stimulate growth. As a result, the country’s foreign currency reserves grew to USD 5.7 billion, economic growth rose to 5.6 percent, and Mongolia’s international credit rating remained stable. The country’s debt risk ranking also improved, moving from seventh to sixth place. "Through the efficient implementation of the revised budget, the Government saved MNT 2.2 trillion in inefficient spending." 

The Prime Minister also highlighted improvements in the management of state-owned enterprises. A special operational regime was imposed on “Erdenes Tavan Tolgoi” JSC, which led to a threefold increase in efficiency and a 1.6-fold rise in coal exports over the two months. Previously stagnant coal trading resumed and saw growth of up to 17 percent. As exports increased, the balance of payments turned positive, and the value of the national currency stabilized.

PM Zandanshatar stated that the Government had also begun a broad reform of the civil service. The number of department heads and senior agency officials was reduced significantly, easing bureaucratic overlap and inefficiencies. The Government has initiated steps to strengthen the National Wealth Fund. It has been decided that citizens will receive the benefits of Mongolia’s strategic mineral deposits. A new copper deposit has also been discovered.

The Prime Minister noted that a new agency to combat narcotics has been established, and anti-corruption efforts are now producing tangible outcomes.

The Government is also digitizing its public finance systems, and VAT receipts will soon be electronically recorded under the “Digital First” initiative.

The Prime Minister added that the Cabinet had approved the country’s Artificial Intelligence Strategy during today’s meeting. A virtual tax zone has been created, and a new digital governance system has been introduced. As part of ongoing fiscal reforms, VAT refunds will be increased to five percent, meaning a family of four could receive up to MNT 2 million annually. The education budget has been doubled, and health sector investment has increased more than fivefold. The Government is also introducing a participatory budgeting model that includes public input during the planning phase and citizen evaluations after implementation.

Looking ahead, Prime Minister Zandanshatar confirmed that a full-scale tax reform will be launched by broadening the tax base.