AKIPRESS.COM - The Ministry of Finance of Mongolia, in partnership with the European Union (EU), has officially launched a new project to advance public financial management reforms in the country as part of the Financing Agreement on "Strengthening Policy and Performance-Oriented Public Financial Management Systems in Mongolia" sigend between the European Union and the government of Mongolia on March 27.

The project will be implemented by the United Nations Development Programme (UNDP) and the World Health Organization (WHO). The project, to be implemented from 2026 to 2029, will support a new phase in Mongolia's public financial management reforms, focusing on stronger budget planning, more efficient and transparent public spending, domestic revenue mobilization, fiscal risk management, tax transparency, and SDG-aligned budgeting in line with Vision 2050 and national development priorities.

"The government of Mongolia and the Ministry of Finance are fully committed to taking these reforms to the next stage. Through this project, we will further strengthen budget planning, fiscal discipline, and accountability to ensure that public resources are effectively aligned with our national development priorities and deliver tangible benefits to the people of Mongolia," Minister of Finance of Mongolia Mendsaikhan Zagdjav highlighted.

The project is funded by the EU, and its implementation will be led by the Ministry of Finance, with UNDP serving as the lead implementing partner, in close collaboration with the Ministry of Economy and Development, the General Department of Taxation, sector ministries, and target local governments. Moreover, WHO will provide expertise in strengthening budgeting and evaluation systems in the health sector.

"Effective public financial management is the backbone of good governance. It ensures that public resources are allocated strategically, spent efficiently, and managed with full transparency. Ultimately, it is about building confidence - confidence of citizens in public institutions, and confidence of investors in the country’s economic management," Ambassador of the European Union to Mongolia Ina Marčiulionytė emphasized.

The initiative builds on the achievements of the previous EU-funded "SDG-Aligned Budgeting to Transform Employment in Mongolia" programme, implemented from 2020 to 2024, which introduced important reforms in results-based planning and budgeting across central and local government institutions.

WHO Representative to Mongolia Socorro Escalante thanked the EU, UNDP and the Ministry of Finance for involving WHO as a joint partner for this landmark programme, and emphasized the importance of strong public financial management for sustainable health outcomes.

"Strong public financial management systems are essential in ensuring that investments in health effectively contribute to the achievement of public health goals. Through this Joint Programme, WHO is committed to working with UNDP and the government to strengthen strategies for investments and financing for health and align public spending with health priorities and close inequity gaps in health," she said.

"Strong public financial management lies at the heart of sustainable development. It enables governments to translate policy priorities into tangible results for people and for the planet," UNDP Resident Representative in Mongolia Matilda Dimovska noted.

The project is expected to strengthen Mongolia's fiscal resilience and improve the quality, transparency, and performance of public spending. Key results will include stronger medium-term budget planning, wider use of programme- and results-based budgeting across central and local government institutions, improved fiscal risk management and disclosure, enhanced domestic revenue mobilization and tax policy capacity, and stronger compliance with international tax transparency standards. The project will also help institutionalize SDG-aligned budgeting by piloting programme budget formulation and evaluation in selected ministries and local governments.