Ulaanbaatar
Performance Audit Report on the 2023 Local Development Fund Presented
Economy
Ulaanbaatar, April 18, 2025 /MONTSAME/. The National Audit Office of Mongolia presented a Performance Audit Report on the “Revenue, Expenditure, and Outcomes of the Local Development Fund of 2023” to the Standing Committee on Budget of the State Great Khural (Parliament) of Mongolia on April 16, 2025.
The Local Development Fund (LDF) is one of the budgetary mechanisms designed solely based on citizen proposals, aimed at supporting local development, ensuring regional balance, and creating stable living conditions for residents. The fund’s sources include a defined share of revenues from domestic VAT, petroleum resource utilization fees, mineral resource royalties, and income from special licenses for exploration and mining. The audit covered the operations of the Unified Local Development Fund, as well as the LDFs of all 21 aimags and the Capital City in 2023.
In 2023, the State Budget of Mongolia allocated MNT 298.4 billion to the Local Development Fund (LDF) and transfers to aimag and Capital City funds. Due to increased revenue from mineral resource royalties, an additional MNT 71.4 billion was allocated to the fund in June 2023. Furthermore, the Citizens’ Representative Khurals of the Capital City, aimags, soums, and districts approved funding sources totaling MNT 174.4 billion. In total, MNT 544.3 billion was budgeted for the Local Development Fund in 2023, of which 94.3 percent was realized. During the reporting period, 8,672 projects were contracted at a total value of MNT 521.8 billion, with MNT 408.5 billion disbursed and a year-end balance of MNT 105.2 billion remaining.
