Public Oversight Hearing on Ulaanbaatar’s Budget Spending and Investment Projects Begins

Ulaanbaatar, June 15, 2026 – A public oversight hearing entitled “Compliance of Ulaanbaatar City’s 2024–2026 Budget Expenditures and Investment Project Implementation with Relevant Legislation” commenced today in the “Great Chinggis Khaan” Hall of the State Palace. The hearing is organized by the Standing Committee on Budget of the State Great Khural (Parliament) of Mongolia.

The hearing opened at 10:25 a.m. with a quorum of 54.2 percent and was chaired by Member of Parliament J. Zoljargal. Members of the Standing Committee in attendance included MPs N. Altankhuyag, J. Batjargal, Kh. Bulgantuyaa, L. Munkhbayasgalan, Ch. Nomin, D. Uriintuyaa, T. Aubakir, J. Batsuuri, P. Ganzorig, B. Munkhsoyol, G. Temuulen, R. Batbold, Kh. Bolormaa, Kh. Gankhuyag, N. Naranbaatar, and D. Tsogtbaatar.

At the opening session, the Chair introduced the attendance record and outlined the procedures governing the hearing in accordance with the Law on Parliamentary Oversight and the Law on the Rules of Procedure of the State Great Khural.

The primary objective of the hearing is to gather and review information, ensure the public’s right to access information, hear the views of citizens and organizations, establish a common understanding among decision-makers, and provide recommendations to the Government and relevant institutions regarding identified shortcomings and violations in the activities of public authorities and officials.

The hearing, which will continue over two days, brought together 92 participants, including one citizen observer, 72 representatives of government and non-governmental organizations, and 19 representatives of the public, in addition to Members of Parliament.

In accordance with Article 126.4 of the Law on the Rules of Procedure of the State Great Khural, the hearing is being conducted in an open format. Proceedings are broadcast live by the Mongolian National Public Radio and Television and through parliamentary digital channels, while remaining open to members of the media.

At the beginning of the hearing, Member of Parliament and Minister of Finance Z. Mendsaikhan delivered a presentation entitled “The Alignment of the Capital City Budget, Legality of Funding Sources, and Key Issues Requiring Attention.”

The Minister highlighted the lack of a clear distinction between functions financed by the state budget and those financed by local budgets. He also provided a detailed overview of the capital city’s revenues, expenditures, and budget deficit. According to the Minister, Ulaanbaatar’s budget deficit has increased significantly in recent years and is undermining the sustainability of the consolidated state budget. The city’s share of the consolidated budget deficit reached 29.5 percent in 2024 and 68.1 percent in 2025, while the planned deficit for 2026 is expected to reach MNT 2.4 trillion.

Minister Mendsaikhan emphasized the need to establish clearer mechanisms for controlling municipal expenditures within the Budget Law and the Law on the Legal Status of the Capital City. He noted that if current trends continue, it may become necessary to impose restrictions on the city’s expenditures and financing in order to contain the budget deficit.

The Governor of the Capital City and Mayor of Ulaanbaatar, B. Purevdagva, then presented information under the theme “Ulaanbaatar City Budget 2024–2026”.

His presentation provided a comprehensive overview of budget formation and expenditures over the past three years, major investment projects financed through the city budget, municipal bond issuances, the allocation of proceeds, and repayment arrangements.

At present, the city budget receives revenue from 25 different sources, including 17 categories of tax revenue and eight categories of non-tax revenue. The Mayor noted that significant changes in the revenue structure of the city and district budgets occurred following legislative amendments in 2022, which allocated 40 percent of corporate income tax revenues to the capital city budget.

Regarding public investment spending, capital investment financed through the city budget amounted to MNT 1.811 trillion in 2024 and is projected to increase to MNT 4.657 trillion by 2026. This growth is primarily attributable to large-scale projects financed through bond issuances and other major investment initiatives.

The hearing also included presentations by experts Ts. Khosjargal and T. Munkhbat on “Assessment of the Compliance of Ulaanbaatar’s 2024–2026 Budget Expenditures, Funding Sources, Decision-Making Processes, and Implementation with Relevant Legislation.”

The experts noted that the city’s originally approved budgets for 2024 and 2025 were amended four times each year. In their assessment, the resulting increase in budget deficits did not comply with the legal grounds established for budget revisions.

According to the expert report, while consolidated budget revenues increased by 23.7 percent, expenditures rose by 34.6 percent, indicating a failure to adhere to sound budgetary principles. Furthermore, 43.2 percent of the bonds issued in 2024 to finance the budget deficit remained unused, largely due to insufficient preparation of the projects intended to receive the funding.

The report also found that actual expenditure execution averaged only 77 percent of approved budget levels, suggesting that planned programs and activities had not been implemented to their intended extent. Experts further concluded that expenditure growth was directly linked to increases in capital spending and payments for services and works contracted to external parties. In conclusion, the experts emphasized the need for the capital city to ensure that its budget planning processes fully comply with existing legislation from the outset.

The hearing then continued with a presentation by V. Oyuumaa, Head of the Capital City Property Management Agency, on “The Scope of Projects Implemented by Municipally-Owned Legal Entities, Their Expenditures, and Aggregate Future Investment Requirements”.

She noted that the analysis was based on audit reports for 2024 and 2025, as well as other relevant official documents. According to her presentation, the capital city is currently implementing 16 projects and programs, each of which was presented in detail during the hearing.