The ruling Mongolian People’s Party group meeting held on November 3, 2025 agreed on measures to raise public-sector wages while cutting other expenditures to free up resources for the 2026 state budget. MPP group leader J.Batjargal said the party has estimated funds to raise the basic teacher salary to MNT 2.8 million from December 1, 2025, and to increase doctors’ and healthcare workers’ pay by 15% from January 1, 2026; the resources have been included in the government’s 2026 budget proposal.
J.Batjargal added that the group discussed increases in pensions and social welfare and “made an estimate of the resources to increase the 6% budget by 8.6%” which have also been reflected in the 2026 draft budget. He said the measures aim to address urgent social needs while remaining within fiscal constraints.
Kh.Gankhuyag, head of the working group tasked with finding the necessary funds, said total expenditures tied to salaries and pensions amount to MNT 1.1 trillion, and that matching the planned rises requires offsetting cuts elsewhere. He said core social funds, including the Social Insurance Fund, Social Welfare Fund, Health Insurance Fund, and performance financing for education and health institutions, as well as disaster prevention, search-and-rescue, interest on government loans, current expenses financed by foreign loans and aid, and child support will not be touched.
To generate savings, Kh.Gankhuyag said most other budget items will be reduced by 10–13%. Specific discretionary expenses, such as domestic hospitality for MPs, Cabinet Secretariat costs, and subsidies of the Minister of Culture, will be eliminated or cut. Investment spending on equipment and devices outside the health and education sectors will be reduced by 50%, and transitional investments will be trimmed by 15%, freeing MNT 150 billion.

Published Date:2025-11-04