Mongolia is facing serious economical difficulties. Because of this, the Mongolian Parliament has approved austerity measures, which involve the salaries of senior government officials being reduced by 30%. Overall 256 senior government officials, including President and MPs will take pay cut from 1st September. As a result of the salary cuts, is expected to recoup MNT 557 million by the end of the year.

The budget amendment was discussed at a non-regular meeting of parliament has today (31th August). According to the plan of the Budget Policy Department of the Finance Ministry, individuals with salaries in excess of 2.5 million salaries face 25% taxes and public administration officials, such as the governors of provinces will see their salaries cut by 20%. In addition, these senior officials will now be banned from buying furniture with public funds and will face reductions in their phone and fuel budgets. Also alcohol and tobacco taxes are to increase by 20%