On November 12, the Parliament of Mongolia approved the 2026 Budget Law, which includes a package of pay rises and social-support increases alongside cuts to other current and capital spending.
Under the approved plan,
- The basic salary for teachers will be increased by MNT 742,000 from January 1, 2026, and will be raised to MNT 2,800,000 from November 1, 2026; the draft places the fiscal cost of the teacher pay changes at MNT 518,620.2 million.
- Health workers’ pay will be increased by 15%, with the additional cost for medical staff estimated at MNT 190,300,000.
- Pensions for the elderly are scheduled to rise by 8.6% (estimated additional cost MNT 145 million),
- Allowances for people with disabilities and the child-support allowance will be increased by 20% (an estimated additional MNT 29,300,000). The draft lists other measures and puts related allocations together in the budget package.
To balance these measures, current expenditures are reduced by MNT 990,169.0 and capital spending cut by MNT 361,138.2, reprioritising project and equipment funding. In particular, 50% of financing for new equipment and certain road-transport and investment projects not included in the Mongolian Development Plan for 2026 were scaled back to create room in the budget.
With these adjustments, Mongolia’s balanced revenues for 2026 are set at MNT 31.93 trillion (about 32.2% of GDP), and the balanced budget deficit is projected at MNT 1.05 trillion, or -1.0% of GDP. The budget now moves to implementation under the approved timetable and will be monitored as key reforms and spending cuts are carried out.
On November 12, the Parliament of Mongolia approved the 2026 Budget Law, which includes a package of pay rises and social-support increases alongside cuts to other current and capital spending.
Under the approved plan,
- The basic salary for teachers will be increased by MNT 742,000 from January 1, 2026, and will be raised to MNT 2,800,000 from November 1, 2026; the draft places the fiscal cost of the teacher pay changes at MNT 518,620.2 million.
- Health workers’ pay will be increased by 15%, with the additional cost for medical staff estimated at MNT 190,300,000.
- Pensions for the elderly are scheduled to rise by 8.6% (estimated additional cost MNT 145 million),
- Allowances for people with disabilities and the child-support allowance will be increased by 20% (an estimated additional MNT 29,300,000). The draft lists other measures and puts related allocations together in the budget package.
To balance these measures, current expenditures are reduced by MNT 990,169.0 and capital spending cut by MNT 361,138.2, reprioritising project and equipment funding. In particular, 50% of financing for new equipment and certain road-transport and investment projects not included in the Mongolian Development Plan for 2026 were scaled back to create room in the budget.
With these adjustments, Mongolia’s balanced revenues for 2026 are set at MNT 31.93 trillion (about 32.2% of GDP), and the balanced budget deficit is projected at MNT 1.05 trillion, or -1.0% of GDP. The budget now moves to implementation under the approved timetable and will be monitored as key reforms and spending cuts are carried out.