50.8 million EUR budget support program to increase jobs and financial transparency
- By Dulguun Bayarsaikhan -
- Jun 04,2020
Mongolia received a grant of 50.8 million EUR, or 155.7 billion MNT, last Friday as part of EU’s first budget support program.
Minister of Finance Ch.Khurelbaatar and EU Ambassador to Mongolia Traian Hristea signed the financial agreement for the EU Budget Support Program, which aims to support Mongolia’s efforts to boost employment, improve transparency in public finance, and address the social and economic consequences of the COVID-19 pandemic. It includes an upfront disbursement of 16 million EUR (49.06 billion MNT) for assisting Mongolia’s actions against the social and economic consequences of COVID-19.
“We’re grateful to our development partners for this grant of 50.8 million EUR which will support our state budget. The COVID-19 is negatively affecting our country, economy and people’s lives. I’d like to thank EU for extending a helping hand during this challenging time,” the finance minister remarked. “I’d like to affirm that we will spend this grant, raised by EU taxpayers’ money, responsibly and efficiently.”
“The Mongolian people can count on the EU’s full support. Today’s assistance package demonstrates the EU’s commitment to Mongolian citizens. Budget support in the employment sector is an important stimulus to react to the economic and social impact of COVID-19. Citizens have also demanded a more efficient and transparent public finance policy – this is vital for public trust in the government effectively spending taxpayers’ money,” said Hristea.
Through the program, EU will support the government to implement reforms, notably its employment policy and its public finance management sectors, including tax reforms. It is expected to help improve skills for employability, promote decent work and formal employment, mobilize domestic resources, increase spending effectiveness and strengthen state and non-state actors’ ability to oversee the mentioned sectors.
The disbursements will be conducted through fixed and variable tranches complemented with dedicated technical assistance. Over the next four years, EU will disburse a grant of 43 million EUR. As part of this program, EU is partnering with UNDP, FAO, International Labour Organization and UNIDO to deliver a 7.4 million EUR technical assistance project. It will focus on transparency and oversight of the budget as well as employment creation in the non-mining sectors for young people and people living with disabilities.
The Ministry of Finance, Ministry of Labor and Social Protection and EU plan to work closely to monitor the progress on the reform implementations.