At its meeting today, the Government approved a resolution on measures concerning state-owned enterprises, launching the implementation of the Law on Governance of State and Local Government-Owned Companies.

Under the resolution, staffing at state-owned enterprises will be reduced by 30 percent, 25 organizations will be removed from the state budget, and 108–324 positions will be reorganized and optimized, resulting in MNT 30 billion in savings on salaries and other recurrent expenditures.

In preparation for the implementation of the Law on Governance of State and Local Government-Owned Companies from January 1, 2027, the Government approved, as annexes to the resolution, lists of state-owned enterprises to be reorganized as state-owned companies, state-owned public service organizations, and entities to be dissolved.

Under the resolution, 25 state-owned enterprises will be subject to consolidation or dissolution. As of 2025, these organizations had a combined workforce of 2,162 employees and an annual payroll of MNT 73.2 billion.

According to preliminary estimates, overlapping management, administrative and service functions will be consolidated, while organizational structures and staffing levels will be optimized. Centralizing office facilities, transport services, administrative support, procurement, information technology and other administrative and service functions is expected to reduce recurrent expenditures and improve the efficiency of budget funding.

According to the 2025 report, a total of 65 state-owned enterprises were operating with 7,030 employees. Of these, 26 fully finance their expenditures through operating revenues, while the remaining 39 receive a combined MNT 153.1 billion in subsidies from the state budget.

Published Date:2026-09-09