Улаанбаатар
MNT 1.4 Trillion to Be Allocated to the Road and Transport Sector in State Budget of 2025
Economy
Ulaanbaatar, November 5, 2024 /MONTSAME/. Next year, the Government of Mongolia has planned to invest heavily in infrastructure sectors including roads, transportation, and energy. These investments will be made on a regional basis to continue ongoing development projects.
In terms of specific sectors, the roads and transportation sectors are set to receive the largest portion, with an allocation of MNT 1.4 trillion. Minister of Road and Transport Development of Mongolia Delgersaikhan Borkhuu reported that the funding will primarily go toward connecting centers of aimags and border ports, as well as constructing roads to tourist destinations. The majority of MNT 1.4 trillion will be allocated to previously initiated projects.
Minister Delgersaikhan further informed, “The initial funding for regional roads connecting certain centers of aimags is being included in the State Budget. Regional development would be practically implemented by connecting the roads with circular road networks. Considering economic benefits, roads directed to border checkpoints in the western region will be paved first. For instance, roads leading to Tsagaannuur and Arts Suuri border checkpoints, which will enhance tourism and boost cross-border trade flow, are included in next year’s budget.
Meanwhile, other strategically important major roads will not rely on the State Budget to avoid financial strain. Instead, these roads will be funded through foreign investments, concessional loans from the World Bank and Asian Development Bank, and public-private partnerships. Major enterprises will be exempt from a one percent social tax. With the exception of ongoing road projects, no additional road expenses will be added to the State Budget.”
