On November 8, Parliament passed the 2025 state budget, which was submitted to the President’s Office 11 days later. After reviewing it, President U.Khurelsukh exercised his constitutional authority and vetoed the budget law in its entirety.

Today /2024.11.22/, The Standing Committee on Justice of the Parliament discussed the President’s veto at a meeting and voted to accept it with more than 90 percent of the members voting.

Reasons for the Budget Veto:  

1. Economic and Market Considerations:  
The budget should account for fluctuations in global markets and commodity prices, aim to increase foreign currency reserves and fiscal savings, and reduce debt. Passing a deficit-free budget during a time of international economic volatility is critical for national interest. An efficient and balanced budget will support economic resilience, ensure the stability of taxpayers and businesses, and provide opportunities to navigate challenges with minimal losses.

2. Non-Compliance with Budgetary Principles:  
The approved budget fails to meet essential principles, including:
– Efficiency and transparency.
– Accessibility and clarity for the public.
– Alignment with macroeconomic stability, including inflation control.
– Equitable allocation of public funds to maximize economic benefits and social importance.

This non-compliance contradicts the constitutional principle of the rule of law.

3. Overspending and Deficit Issues: 
The President emphasized the need to limit excessive operational expenditures outlined in the 2024-2028 government action plan and address budget deficits and public debt requirements.

4. Violation of Legal Procedures:  
The budget process contravened the fundamental principle of the rule of law. Legislation mandates that any revisions to the annual budget should be submitted by the government only after the budget has been enacted and enforced. However, the Parliament preemptively adopted amendments to the 2025 budget, creating legal inconsistencies.

The President has instructed Parliament to revise and resubmit the budget to ensure its compliance with constitutional and fiscal principles.