President of Mongolia scraps 2025 State Budget
The President of Mongolia has vetoed the Law on the State Budget for 2025 and the accompanying laws, based on the relevant provisions of the Constitution and the Law on the President.
The President of Mongolia has vetoed the Law on the State Budget for 2025 and the accompanying laws, based on the relevant provisions of the Constitution and the Law on the President. Head of the Office of the President of Mongolia and other officials briefed on the veto on November 20.
Head of the Office of the President of Mongolia noted that the President’s decision to veto the Law on the State Budget for 2025 was based on the requirement for the State Budget to be efficient, cost-saving, and deficit-free. The veto was also based on the Parliament’s approval of the resolution to adjust the 2025 State Budget without meeting the prerequisites which include increased expenditure, decreased revenue, and required changes to the cost of approved projects and programs during the fiscal year.
The State Budget serves as a guarantee to overcome potential economic difficulties with minimal losses, increase national savings, limit price inflation, ensure economic stability, and support the normal operations of citizens, businesses, and taxpayers. Therefore, the Head of State emphasized the necessity of approving next year's State Budget in a manner that is efficient, economical, and deficit-free.
Additionally, the President highlighted the importance of considering the conditions of the global market and fluctuations in raw material prices, while focusing on fundamental principles such as increasing the country's foreign exchange reserves, boosting budget savings, and reducing debt. The Head of State emphasized the need to implement a countercyclical fiscal policy and adopt a deficit-free budget.
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