The Secretariat of the State Great Khural of Mongolia today organized the “Budget-2023” public discussion at the State House.

Being held for the first time, the discussion brought together the members of the cabinet and the parliament and more than 700 online and in-person participants, including ambassadors, economists, and researchers.

At the beginning of the discussion, it was emphasized that citizens' opinions were taken for the 2023 budget through the "E Parliament" and "D Parliament" electronic systems.

Prime Minister L.Oyun-Erdene presented in detail the policies and concepts adopted by the government in developing the 2023 budget, the features of the 2022 budget year, the external and internal factors faced by the society and the economy, and the measures to be taken to avoid the economic crisis in the future.

The 2022 budget was mainly targeted at the recovery of the economy to overcome the pandemic crisis, highlighted the Prime Minister.

This year, the conditions have been created to carry out the budget reforms that have been talked about for many years. However, we have to take into account that the 2023 budget is being discussed at a time of geopolitical uncertainty and during a time when the acceleration of the post-pandemic economic recovery is most necessary.

According to the Prime Minister, the government also paid attention to achieving four major policy results. First of all, it is the most important thing for Mongolia in the coming years to ensure the macro balance of the economy and keep the economic growth stable at 5-6 percent. The government also paid particular attention to bringing the inflation rate, which currently stands at 15 percent, to single digits and limiting price increases. Emphasis was placed on changing the way budget deficits created debt, reducing unnecessary spending, gradually reducing welfare, and balancing the balance of payments, or inflows and outflows of foreign currency. In particular, the next year's budget was developed to take concrete policy measures against the increase in the prices of goods and products, currency reserves, and the depreciation of the MNT.

During the discussion, the Government Head also presented in detail the implementation of the Austerity Law and the intensification of the "New Revival Policy". He also expressed his views on the measures being taken by the government to bolster the revitalization of priority sectors, and major projects planned to dramatically reduce traffic congestion.

Minister of Economy and Development Ch.Khurelbaatar informed the participants about the pre- and post-pandemic economic situation, the factors affecting the increase in the exchange rate and decrease in reserves, and the possible risks. Due to the slowing down of economic growth, rising inflation, and decreasing employment, conditions for stagflation have been created today, and inflation is expected to be higher than the target level in the next year as well. Therefore, next year, in order to intensify economic growth, the government will implement policies to ensure macroeconomic stability and support exports and the private sector, and it will be possible to increase GDP growth to 5 percent.

Finance Minister B.Javkhlan presented the external factors that will affect the economy in 2023, the results of the Austerity Law, the tax policies that are going to be supported, the possibilities to introduce a "results-based" salary system, and the fact that the government's external debt will be paid with no difficulties according to the schedule.

The Finance Minister underscored that it is estimated to save MNT 1 trillion in 2023 by implementing the Austerity Law. He further informed that the budget deficit will be reduced from 5.1 to 2.8 percent.

In terms of macroeconomics, we aim to increase quality exports, increase economic growth by 5 percent, reduce inflation to below 10 percent by the end of the year, and maintain our credit rating, said the Finance Minister.