The Ministry of Finance of Mongolia, in partnership with the European Union (EU), has officially launched a new project to strengthen policy and performance-oriented public financial management systems under the Financing Agreement signed in March 2024.
In the framework of the Financing Agreement signed in March 2024 between the European Union and the Government of Mongolia on “Strengthening Policy and Performance-Oriented Public Financial Management Systems in Mongolia,” 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. 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, marks 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 all in line with Vision 2050 and national development priorities.
H.E. Mr. Mendsaikhan Zagdjav, Minister of Finance of Mongolia, highlighted: “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.”
The project is funded by the European Union, 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.
H.E. Ms. Ina Marčiulionytė, Ambassador of the European Union to Mongolia, emphasized: “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.”
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.
Building on this strong foundation, the new 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 and 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 further support the institutionalization of SDG-aligned budgeting by piloting programme budget formulation and evaluation in selected ministries and local governments.
Ms. Matilda Dimovska, UNDP Resident Representative in Mongolia, noted: “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.”
About European Union
The European Union is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit.
About UNDP
UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet.
About WHO
WHO was established on 7 April 1948 as the directing and coordinating authority in global public health within the United Nations system. Working at three levels in the Organization (global, regional and country), more than 7000 WHO staff worldwide collaborate with the governments of 194 Member States and other partners to achieve the WHO founding vision of the attainment of the highest possible level of health by all people.
For further inquiries:
Burtguljin Tumentsogt | Press and Information Officer | Delegation of the European Union to Mongolia | Burtguljin.TUMENTSOGT@eeas.europa.eu