Parliament approves Mongolia's 2027 budget with 41.5 trillion tugriks in spending and a 10% pension rise

At its plenary session on November 13, the State Great Khural gave final approval to Mongolia's 2027 budget, with revenue of 39.2 trillion tugriks and spending of 41.5 trillion tugriks. Of the 110 members who voted, 82.7% backed it.

What changed from the original draft

When the government submitted the bill on August 31, 2026, it planned revenue of 41.3 trillion tugriks and spending of 43.6 trillion tugriks for 2027. According to iSee.mn, both figures were reduced in line with proposals from lawmakers and the working group. The government may now issue bonds of up to 6.4 trillion tugriks, and provinces and the capital up to 2.8 trillion tugriks, while 3.9 trillion tugriks is earmarked for investment in buildings, projects and programs.

Pensions, wages and taxes

Finance Minister Z. Mendsaikhan told UBN that pensions will rise by another 10% from January 1, 2027, bringing the average pension to 1.3 million tugriks. Salaries for public service employees will rise by 10% from April 1, 2027, and those for public administration and special service staff by 20%. Disability allowances will increase by 122,000 tugriks to 622,000, and the caregiver allowance by 40,000 tugriks.

The first 792,000 tugriks of monthly wages will be exempt from personal income tax. According to a summary by Dardas.mn, this cuts the tax burden by 840 billion tugriks. The VAT registration threshold rises from 50 million to 400 million tugriks, and businesses with annual sales of up to 2.5 billion tugriks will pay a 1% tax.

Other key provisions

Speaker S. Byambatsogt said, as reported by inews.mn, that the budget includes full health insurance coverage for some commonly used medicines for older people and other target groups, up to $500 million in new funding for mortgage loans to help 16,000 people buy homes, and 338 km of new roads. Small and medium-sized businesses will be offered concessional loans at 10% a year.

Prime Minister N. Uchral highlighted that the share of tax revenue in the budget has been cut from 90% to 79%, with 21% coming from state-owned companies' profits and interest income.

Reaction on X

Posts criticizing the size of the budget and some ministries' spending spread on social media. The @p_tsenguun account, for example, compared the 41.5 trillion tugriks in spending with GDP, while many users shared news of the pension increase.