Ulaanbaatar
Draft Law on Amendments to the State Austerity Law to be Submitted to the State Great Khural
Politics
Ulaanbaatar, January 11, 2024
/MONTSAME/. After discussing the draft Law on Amendments
to the State Austerity Law, the Cabinet decided to submit it to the State Great
Khural of Mongolia for urgent discussion, in compliance with the Law on the
Procedure of the Sessions of the State Great Khural on January 10, 2024.
The
Parliament of Mongolia approved the State Austerity Law on April 29, 2022. This
legislation mandates the enforcement of financial discipline in the government,
its organizations at all levels, public services, and their activities. The key
objectives include ensuring transparency, enhancing efficiency, and
implementing measures to limit and monitor wastage. Budget administrators at all levels and state-owned
enterprises have implemented the State Austerity Law, resulting in cuts to
costs, staff, and the salary fund.
Additionally,
all possible costs have been reduced through various operational changes within
public organizations. These include limitations on car usage during official
missions (requiring travel in economic class only), eliminating uniform
purchases, public fund expenditures on souvenirs and presents, digitizing
official records, and implementing measures to save electricity, heating, and
energy consumption. The Cabinet concluded that the State Austerity Law has
achieved outcomes, contributing positively to economic growth through reduced
state budget expenditures.
A draft
Law on Amendments to the State Austerity Law has been developed to ensure normal
operations of public organizations in rural areas and enhance the efficiency
and accessibility of their services to citizens.
The new
Law will facilitate the uninterrupted operation of public organizations in
rural areas during challenging weather conditions, such as harsh winters and
spring seasons. Also, it will ensure the timely and efficient delivery of
essential public services to citizens. While maintaining fiscal discipline and continued
austerity measures, the new law is expected to affect the improvement to access
to public services.
