Prime Minister Zandanshatar Gombojav recently spoke to Mongolia’s youth at Ulaanbaatar Park. During his speech titled “New Confidence-Innovation,” he focused on transparency in budget approval and tax reforms. Furthermore, he emphasized the country’s digital transformation and fiscal responsibility.
A total of 190,000 citizens voted on Mongolia’s 2026 draft budget. Interestingly, half of the voters were between 18 and 35 years old. This clearly shows strong youth interest in shaping financial policies. Additionally, young people actively participated in a VAT survey on the “DParliament” platform.
When answering questions, the Prime Minister outlined plans to improve the progressive tax system on salaries. Moreover, the government will include operating income. In addition, it will introduce tiered VAT discounts based on purchase amounts. These changes aim to support wealth creators, producers, and employers. Consequently, the government plans to increase VAT refunds gradually, rewarding taxpayers rather than punishing them.
The tax service will also offer advisory support and focus on risk prevention. It will introduce tax reliefs to protect citizens’ incomes and promote employment. As a result, these reforms will ease the tax burden on low- and middle-income people and businesses. They will also encourage sustainable business growth and help companies scale.
However, youth criticized excessive government spending and poor use of budget funds. Many expressed frustration over the lack of transparency about how the government spends their taxes. Therefore, they want better accountability and resource management.
In response, the Prime Minister announced a new open and transparent budget process. The government will develop a digital system to show exactly how taxpayers’ money is spent. This system will break down spending by region, district, and smaller areas. The program will launch soon, and young people will participate by voting.
Furthermore, youth called on the government to reform the IT sector, support startups, and create tax-free zones to boost business. Meanwhile, the Prime Minister thanked youth for their input before parliamentary budget talks.
Finally, PM Zandanshatar highlighted the youth’s vital role in Mongolia’s future. He stressed that the country must shift from a coal-based economy to a knowledge-driven one.Overall, the focus on transparency in budget approval now tops the government’s priorities, with youth leading this change.
