According to the preliminary results in the first 7 months of 2022, the total revenue of the general government budget was MNT 9.4 trillion, increased by MNT 773.8 billion (8.9 percent) compared to the same period of previous year. The equilibrated revenue of the general government budget was MNT 8.7 trillion increased by MNT 1.0 (13.7 percent) trillion compared to the same period of previous year.

In the first 7 months of 2022, the total expenditure and net lending was MNT 9.5 trillion, resulting in deficit of MNT 788.4 billion. In July 2022, the total equilibrated revenue and grants of general government budget was MNT 1.4 trillion, decreased by MNT 47.6 billion (3.4 percent) compared to the previous months. The total expenditure and net lending were MNT 1.3 trillion, decreased by MNT 408.1 billion (23.8 percent) compared to the previous months.

The equilibrated balance of the general government budget was in deficit of MNT 304.9 billion in June 2022, while in July, and was in surplus of MNT 55.6 billion. In the first 7 months of 2022, tax revenue reached MNT 8.2 trillion, increased by MNT 1.5 trillion (21.7 percent) compared to the same period of previous year. This increase was mainly due to MNT 679.5 billion (2.2 times) increase in other taxes revenue MNT 533.2 billion (34.6 percent increase in value added tax revenue and MNT 421.4 billion (35.9 percent) increase in social security contributions revenue while income taxes revenue decreased by MNT 430.6 billion (18.2 percent) compared to the same period of previous year.

In July 2022, tax revenue reached MNT 1.3 trillion, increased by MNT 109.6 billion (9.5 percent) compared to the same period of previous year. This increase was mainly due to MNT 74.3 billion (37.7%) increase in value added tax revenue MNT 29.5 billion (16.3 percent) increase in social security contributions revenue and MNT 125.5 billion (2.3 times) increase in other taxes revenue while MNT 135.0 billion (26.3 percent) decrease in income taxes revenue and MNT 14.8 billion (18.0 percent) decrease in excise taxes revenue.

Source: National Statistics Office of Mongolia

The American Chamber of Commerce in Mongolia (AmCham Mongolia) organized a discussion and meeting on August 17, 2022, on investment opportunities and challenges in Mongolia. Ambassador Extraordinary and Plenipotentiary to Mongolia Michael S. Klecheski gave a speech at the meeting and shared details of the 2022 Investment Climate Statement issued by the U.S. State Department, touching on issues that deserve further attention. He noted, "The U.S. Embassy in Ulaanbaatar’s 2022 Mongolia Investment Climate Statement drew input from the foreign and domestic business community and others to describe Mongolia’s investment climate. It highlights that Mongolia’s natural and human resources remain a real draw for foreign and domestic investors; and underscores that a more stable, predictable, and transparent legal and regulatory framework would help increase investments and jobs in Mongolia.”

The Deputy Minister of Justice and Home Affairs, B. Solongoo, also attended the AmCham Monthly Meeting. She provided an update on the development, substance, and conceptual direction of revised amendments to the Investment Law and addressed questions from attendees. She highlighted, "It is clear that Mongolia's investment is overly dependent on a single industry because it is closely tied to a well-known mega-project. The fundamental purpose of the law under consideration is to boost investment, the economy, and investor confidence and conviction. Priority one is to draw in new investment prospects, but before that, we are trying to ensure that the ‘transitional arrangements’ take existing investors' suggestions and grievances into account.”

Michael Richmond, the Senior Commercial Specialist at the U.S. Embassy, served as moderator for an engaging panel discussion with Deputy Chairwoman of AmCham Mongolia and Chairman of the Board of Directors of Monpolymet Group N. Munkhnasan, Country Director of PwC Mongolia Shaukat Tapia, and economist and associate professor at the University of Finance and Economics J. Delgersaikhan. According to Shaukat Tapia, improving the FDI environment is essential since Mongolia has great potential to draw in investment. J. Delgersaikhan stated that laws not only need to be written but also implemented, noting that the application of the rule of law, law enforcement, and the justice system should be thoroughly examined and developed for the investment legal framework.

The Chairman of the Board of Directors of Monpolymet Group and Deputy Chairwoman of AmCham Mongolia, N. Munkhnasan, said, "I believe that the revisions to the Law on Investment will focus on the inequality of previous laws and legal regulations, improving their coordination and ensuring the practical implementation of the law."

In concluding the discussion, Michael Richmond stated that the government and legislators should solicit feedback from business owners to fully represent the views of all stakeholders when developing legislation, and that frequent meetings and discussions be held while revising the Investment Law. AmCham Mongolia stated that it was ready to keep collaborating with the executive and legislative branches of government to strengthen the business environment.

More than 80 people attended the August Monthly Meeting, including AmCham Mongolia members, foreign and domestic investors, and media representatives.

Source: amcham.mn

At an invitation of the Mongolian National Film Council (MNFC) under the Ministry of Culture, producers and managers of the world’s major film studios, production companies, and companies such as Netflix, HBO, Warner Bros, Paramount Pictures, Discovery, National Geography, Living films and MTV will arrive in Mongolia. Specifically, producers of films namely as ‘Wonder Woman 1984,’ ‘Greenland,’ ‘Hangover,’ ‘Sweet home’ and ‘All of us are dead’ will arrive in the country, meet with Minister of Culture Ch.Nomin and participate in a ‘Fam-Tour’ event to be co-organized by the MNFC.

During their visit, they will exchange views with Mongolian filmmakers, directors and producers on making works jointly, participate in meetings to promote artists, and also get acquainted with studios, shooting areas, and productions made by Mongolian filmmakers.

Since 2012, Mongolia has issued seven international bonds worth USD 5.2bn, with all but the first sovereign bond, the Chinggis Bond—named after founder of the Mongol Empire, Chinggis Khaan, or Genghis Khan—used to finance state budget deficits. It’s also a time to once more observe that the Chinggis Bond, the only bond used to finance projects, has been mismanaged.

Since 2013, Mongolia has drawn nearly USD 3.7bn in swap agreement loans from China’s central bank. As of 2020, it had repaid $1.5bn of the lent capital, while receiving another extension on debt repayment stretching to the end of 2023. This loan is one of the first Mongolia must repay.

With the exception of 2018, Mongolia’s annual state budget expenditure has exceeded its income throughout the past decade. (source: bne IntelliNews )

In recent years, the comprehensive strategic partnership between Mongolia and China has developed rapidly, leading to accelerated investment and trade activities between the two countries. From the 5,800 legal entities with Chinese investment registered in Mongolia, 1,690 have stable operations and pay taxes.

China is Mongolia’s biggest investor as it accounts for 21 percent offoreign direct investment (FDI) to the country and over 50 percent of Mongolian companies with foreign equity. China’s investment in Mongolia reached USD 108 million, of which 68percent comes from the mining sector, and 21 percent from trade andthe food sector.