Today (11 November), Mongolia’s parliament, the State Great Khural, approved the 2023 state budget with a deficit of MNT 1.4 trillion (USD 411.6 million).

In the state budget, revenue is projected to be about MNT 19 trillion (USD 5.5 billion ), or 34.9 percent of the GDP, and spending is estimated to be around MNT 20.4 trillion (USD 5.9 billion), or 37.6 percent of the GDP.

This is the first state budget since the country’s state austerity law was passed in April.

Within the framework of the austerity law, measures will be taken to keep the budget deficit at the target level, stabilize the economy, and implement budget discipline at all levels next year, said Finance Minister B.Javkhlan.

The Mongolian government expects the economy to grow by about 5 percent and the inflation rate will be reduced to a single-digit level.

Mongolia’s annual inflation rate reached 13.8 percent in September while the rate hit 14 percent in the capital Ulaanbaatar, home to over half of the country’s population of 3.4 million.