Mongolia - Consolidating the Gains, Managing Booms and Busts, and Moving to Better Service Delivery : A Public Expenditure and Financial Management Review - Core Report

Mongolia's external economic outlook is dramatically changing as it faces sharp reductions in the copper price, caused by the financial crisis and global downturn. This compels the government now to drastically cut spending to prudently manage the budget. The budget is extremely dependent on mining revenues. Government is taking the right step in proposing a balanced budget for 2009. But further adjustments will be needed given the continuing fall in copper prices. A prudent fiscal stance will also be needed to manage inflation, which accelerated in the past year to over 30 percent. The current situation highlights the need to manage mining revenues better than in recent years. Mongolia saved little during the boom years, but instead dramatically increased expenditures on wages and salaries, and poorly-targeted social transfers. Adopting a multi-year fiscal framework-which enforces saving during the boom years, sets limits to expenditure growth and debt, and ensures transparency to the public-can help. Since much of the past windfall revenues have been spent, the country enters the down-turn with little savings and high inflation, forcing it to cut expenditures with every drop in the copper price. To avoid such situations in the future, the government has the opportunity to adopt a transparent, multi-year budget framework for expenditures and investment. This includes adopting a new fiscal responsibility law. It will ensure that the government saves during the 'boom' years, so that it can continue to spend during the 'bust' years. It will also set limits to expenditure growth and public debt. Within the limits set by this framework, parliament can then exercise its constitutional rights to amend the budget.

Bibliographic Details

Main Author:	World Bank
Format:	Integrated Fiduciary Assessment biblioteca
Language:	English
Published:	World Bank 2009-01-02
Subjects:	ACCESS TO INFORMATION, ACCOUNTABILITY, ACCOUNTABILITY MECHANISMS, ACCRUAL ACCOUNTING, ADVERSE CONSEQUENCES, AGGREGATE DEMAND, ALLOCATION, ANNUAL BUDGET, AUDIT OFFICE, AUTOMATIC STABILIZERS, BENEFICIARIES, BUDGET BALANCE, BUDGET CYCLE, BUDGET DEFICIT, BUDGET DEFICITS, BUDGET DOCUMENTS, BUDGET ENTITY, BUDGET FRAMEWORK, BUDGET INFORMATION, BUDGET MANAGEMENT, BUDGET PLANNING, BUDGET PREPARATION, BUDGET SITUATION, BUDGET SURPLUSES, BUDGET SYSTEM, BUDGETARY ALLOCATIONS, BUSINESS PLANS, CAPACITY CONSTRAINTS, CAPITAL EXPENDITURES, CAPITAL INVESTMENT, CAPITAL INVESTMENTS, CAPITAL PROJECTS, CAPITAL SPENDING, CENTRAL BANK, CENTRAL GOVERNMENT, CHART OF ACCOUNTS, CIVIL SERVICE, CIVIL SERVICE REFORM, CIVIL SOCIETY ORGANIZATIONS, COMMODITY PRICES, COMPETITIVE BIDS, CONSUMPTION SMOOTHING, COST-EFFICIENCY, CUT SPENDING, CYCLICAL FACTORS, DEBT, DEBT BURDEN, DEBT MANAGEMENT, DEBT MANAGEMENT SYSTEM, DEBT SUSTAINABILITY, DISCRETIONARY ACTION, DONOR ASSISTANCE, DONOR COORDINATION, DONOR FINANCING, DONOR FUNDING, ECONOMIC FLUCTUATIONS, ECONOMIC GROWTH, EDUCATION EXPENDITURES, EDUCATION SERVICES, EFFICIENCY GAINS, EVALUATION CAPACITY, EXCHANGE RATE, EXOGENOUS SHOCKS, EXPENDITURE ASSIGNMENTS, EXPENDITURE GROWTH, EXPENDITURE MANAGEMENT, EXPENDITURES, EXTERNAL AUDIT, FINANCIAL AUDITS, FINANCIAL BURDEN, FINANCIAL CRISIS, FINANCIAL MANAGEMENT, FINANCIAL MANAGEMENT INFORMATION, FINANCIAL MANAGEMENT INFORMATION SYSTEM, FINANCIAL MANAGEMENT SYSTEM, FINANCIAL MANAGEMENT SYSTEMS, FISCAL AFFAIRS, FISCAL BALANCE, FISCAL CONSOLIDATION, FISCAL DECISIONS, FISCAL DEFICIT, FISCAL DEFICIT TARGET, FISCAL DISCIPLINE, FISCAL POLICY, FISCAL POSITION, FISCAL REVENUE, FISCAL RULES, FISCAL STANCE, FISCAL SUSTAINABILITY, GOVERNMENT BUDGET, GOVERNMENT DEBT, GOVERNMENT EXPENDITURE, GOVERNMENT EXPENDITURES, GOVERNMENT POLICY, GOVERNMENT PRIORITIES, GOVERNMENT REVENUES, GROSS DOMESTIC PRODUCT, HEALTH CARE, HEALTH EXPENDITURE, HEALTH EXPENDITURES, HEALTH FINANCING, HEALTH INSURANCE, HEALTH INSURANCE FUND, HEALTH MINISTRY, HEALTH OUTCOMES, HEALTH SECTOR, HEALTH SERVICES, HEALTH SPENDING, INFLATION, INFORMATION ASYMMETRY, INFRASTRUCTURE SERVICES, INTERNAL AUDIT, INTERNAL CONTROLS, MACROECONOMIC CONDITIONS, MACROECONOMIC STABILITY, MANAGEMENT CONTROLS, MARKET ECONOMY, MARKET FAILURES, MASTER PLAN, MEDIUM-TERM EXPENDITURE, MEDIUM-TERM EXPENDITURE FRAMEWORK, MEDIUM-TERM FISCAL FRAMEWORK, NATIONAL AUDIT, NATIONAL STATISTICS, NATIONAL STATISTICS OFFICE, OUTPUT RATIO, PERFORMANCE CONTRACTING, PERFORMANCE CONTRACTS, PERFORMANCE MANAGEMENT, PERFORMANCE MANAGEMENT FRAMEWORK, POVERTY REDUCTION, PRICE INDEX, PRIVATE PENSION, PRIVATE SECTOR, PRIVATE SECTOR GROWTH, PROCUREMENT POLICY, PROGRAMS, PUBLIC BUDGET, PUBLIC DEBT, PUBLIC DEFICIT, PUBLIC DEFICITS, PUBLIC EDUCATION, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE POLICY, PUBLIC EXPENDITURE TRACKING, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC FINANCIAL MANAGEMENT, PUBLIC FINANCIAL MANAGEMENT SYSTEMS, PUBLIC GOODS, PUBLIC HEALTH, PUBLIC HEALTH INTERVENTIONS, PUBLIC INFRASTRUCTURE, PUBLIC INVESTMENT, PUBLIC INVESTMENT PROGRAM, PUBLIC INVESTMENTS, PUBLIC PROCUREMENT, PUBLIC RESOURCES, PUBLIC REVENUE, PUBLIC REVENUES, PUBLIC SECTOR, PUBLIC SECTOR MANAGEMENT, PUBLIC SERVICE, PUBLIC SERVICE DELIVERY, PUBLIC SERVICES, PUBLIC SPENDING, RECURRENT EXPENDITURES, RESOURCE ALLOCATION, RESOURCE MANAGEMENT, REVENUE LEVELS, REVENUE SOURCES, SCHOOL MANAGEMENT, SERVICE DELIVERY, SOCIAL ASSISTANCE, SOCIAL INSURANCE, SOCIAL PROTECTION, SOCIAL SECURITY, SOCIAL SECURITY SYSTEM, SOCIAL TRANSFER, SOCIAL WELFARE, STRENGTHENING BUDGET EXECUTION, SUPREME AUDIT INSTITUTIONS, SUSTAINABILITY ANALYSIS, TAX ADMINISTRATION, TAX COLLECTION, TAX POLICY, TOTAL EXPENDITURES, TOTAL PUBLIC SPENDING, TRANSPARENCY, TREASURY MANAGEMENT, TREASURY SYSTEM, UNCERTAINTY,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20090208230004 http://hdl.handle.net/10986/3017
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