AKIPRESS.COM - The World Bank approved $12 million in financing to help strengthen fiscal and financial stability in Mongolia at a critical juncture for the country’s economy, WB said in a release.

The Strengthening Fiscal and Financial Stability Project will work across sectors to improve the quality of expenditure management, bolster financial sector stability, increase fiscal discipline, and strengthen the social protection system. Comprehensive support will be provided to strengthen budget preparation in all stages, starting from preparation to execution.

“With its vast natural and human resources, Mongolia’s long-term prospects are promising, but vulnerabilities to external shocks such as commodity market fluctuations pose risks. The World Bank is committed to partnering with Mongolia in deepening and sustaining reforms that can promote sustainable growth,” said World Bank Country Manager for Mongolia James Anderson.

Reform measures will include the application of the latest econometric tools to improve government capacity in macro-economic forecasting, and the upgrading of the financial information system in order to strengthen management, accountability, and transparency.

The project will also support the implementation of a financial sector strategy and the strengthening of the public investment management system, so that growing investment leads to better living standards across the country.

Existing social welfare programs will be strengthened to ensure that social welfare support provided by the government benefit the poorest. Mongolia has a relatively large number of small but fragmented social assistance programs that are cash-based. The project will support the government’s efforts in implementing their pension reform program.

The project will be funded on concessional terms by the World Bank’s International Development Association.