Finished researches

Budget Revenue Management

Authors: Tuvshintugs B,Esmedekh L, Munkh-Ireedui B, Delgermaa B

Source: Economic Research Institute

Keywords: Fiscal Stability Law, fiscal stability fund, fiscal rules

Date: 2017-11-28

This research was commissioned by JICA. Its main purpose is to assess the impact of Fiscal Stability Law on the economy. In 2010, the Parliament adopted , the Law which took effect in 2013. The Fiscal Stability Fund was established in 2011. The purpose of a stabilization fund is to prevent economic fluctuations related to changes in mineral commodity prices and encourage sustainable economic growth.

Although the law had been imposed for two years, the Parliament postponed its implementation considering economic difficulties. As the FSF could not save enough money, there was an increase in a public debt; however, the budget has had continued deficit in the last few years. For instance, by the end of 2016, public debt increased to around 80 percent of GDP and the Government allocated over 20 percent of budget revenue to interest payments of public debt.

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