Freedom of Press - “Reporters without Borders”

In 2010, Mongolia is listed 76th in the Annual Press Freedom Index prepared by Reporters Without Borders. This index was based on the survey conducted on 178 countries of the world between September 1st 2009 and September 1st 2010. This year Finland was found at the top of the list with the most freedom of the press and Eritrea was listed at the bottom. Countries were rated according to their index on freedom of press and higher the number goes, lesser the freedom gets. The index is based on a questionnaire with 40 questions. Mongolia is listed 76th with 19.42 points. In 2009, Mongolia was listed 91st with 23.33 points.

Democracy - "The Economist Intelligence Unit” and “Economist Journal”

“The Economist Intelligence Unit” of British “Economist Journal” produced “Democracy Index 2010”. This index is based on five basic categories: electoral process and pluralism, civil liberties, functioning of government, political participation and political culture. The EIU measures the state of democracy in 167 countries and categorize into full democracies, flawed democracies, hybrid regime and authoritarian regimes. In 2010, Norway was listed as the most democratic country of the world and North Korea was listed at the bottom. Mongolia was listed 64th with 6.36 points, flawed democratic country.

Human Development - “United Nations”

United Nations published its “Human Development Index” of 2010. This year’s edition’s topic is The Real Wealth of Nations: Pathway to Human Development and published for the 20th anniversary of the index.  This index is composed from statistical data on health condition, life expectancy, education, and living standards with additional information of government and individual freedom. The index is first founded and devised by Pakistani Economist Mahbub ul Haq and it has been 20 years since the first issue.

• Life Expectancy
• Knowledge and education
• Standard of living

By combining these three dimensions, Human Development Index ranks world countries into 4 different types of human development: very high, high, medium and low. Mongolia is ranked in 100th with 0.622 points and classified as medium.

Doing Business - “World Bank Group”

World Bank Group released “Doing Business 2011” report. This report reports the study of improving the ease of doing business in 183 countries of the world. 6700 researchers and scientists of various countries contribute to this report since it has started in 2004. This year’s report contains facts and materials between June 2009 and June 2010. Ease of doing business index is calculated by using indicators as starting a business, getting credit, trading across borders, dealing with construction permits, protecting investors, enforcing contracts, registering property, paying taxes and closing business.

Mongolia is ranked in overall 73rd with Starting business 86th, dealing with construction permits 104th, registering property 27th getting credit 72nd, protecting investors 28th, tax situation 66th, international trade 158th, enforcing contracts 35th, and closing business 119th.

Competitiveness - “World Economic Forum”

Mongolia is listed 99th in “The Global Competiveness Index 2010 - 2011” published by World Economic Forum in 2010. This report is based on survey feedback among business owners and company directors conducted by research institutes and specialist of their respective countries. This year 13500 businessmen of 142 countries participated in the survey. Our country scored 3.75 out of possible 7 points and it’s rating has climbed 18 places from the last year’s. Improved budget stability, reduced inflation and increased savings etc macroeconomic environmental improvements have scored 4.9 points (3.9 last year) and helped Mongolia’s overall rating to climb. But due to difficulty of getting credit, reliability of commercial banks, low regulation of security market and not having various ways to financing the business, financial market development index fell from the last year’s 3.4 to 3.1, listed 129th. Therefore, it is noted in the report that we must modernize Mongolian stock exchange and overall securities market, establish development bank to increase capital flow and improve the availability of commercial loans. Moreover, it is noted that the lack of professional labor and work ethics affects negatively in Mongolia’s competitiveness.

The World’s Happiest Country - “Gallup International”

International research organization Gallup International releases the list called "The World’s Happiest Countries". In 2010, Denmark was at the top of the list. The research is based not on economic indicators but on people’s opinion and has been conducted since 2005 to 2009. About 10,000 people from 155 countries were asked if they are happy about their life and requested to rate their living standard from 1 to 10. Mongolia was listed 130th in the list. According to the research 7% of Mongolian population is satisfied with their lives, 81% lives with some level of stress and 12% is in misery.

Government Control - “Foreign Policy” and “American Fund for Peace”

Foreign Policy magazine and American Fund for Peace, published annual “Failed States Index 2010” for the 6th time. This index shows whether particular country’s government is in control of its physical territory, economy, and ethnic groups’ relations. In 2010, Somali was named as Failed State. The index is calculated by the use of “Conflict Assessment System Tool”. Ranking is based on 3 basic groups of social, economy and government military with total scores of the 12 indicators. Overall conclusion is based on whether government is in control of its 5 important indicators: government, army, police, court and civil organizations. For each indicator, the ratings are placed on a scale 0 to 10, with 0 being the most stable and 10 being the least stable. Mongolia is listed 129th with score of 60.1. This means our country is listed below average. In 2009, Mongolia was listed 127th.

Ratings by:

Social -
	Race and ethnic groups – 5.6
	Number of immigrants – 1.4
	Unhappy residents and hate groups – 4.3
	Whether citizens are fleeing the country – 2.3
Economical -
	Imbalances in economic development – 5.9
	Economic Instability – 5.7
Political -
	Political Crime 6.2
	Quality of social service 5.3
	Violation of human rights – 6.4
	Influence of armed forces 4.8
	Influence of ethnic groups and families
	Influence of a foreign state and political organization – 6.9

Peaceful Country - “The Economist Intelligence Unit”

Mongolia is ranked at 92nd place with 2.101 points in the “Global Peace Index 2010” which is published by British “The Economist Intelligence Unit” organization and “The Institute for Economics and Peace”. This index ranks the countries according to their peacefulness, internal conflicts and foreign policies. It ranks 149 countries since it has started in 2007. The index is calculated based on 23 indicators of three basic groups. They are:

• Number of external and internal wars fought
• Estimated deaths due to external wars
• Estimated deaths due to internal wars
• Relations of neighboring countries
• Level of organized internal conflict
• Number of displaced persons as percentage of population
• Number of homicides
• Ease of access to small arms and light weapons
• Number of jailed persons
• Level of respect for human rights
• Political instability
• Potential for terrorist act
• Military capability
• Military expenditures as a percentage of GDP
• Exports and imports of major conventional weapons
• Number of police and security officers
• Per capita weapon

Countries score 1-5 points on each indicator, and the country with the least points is considered peaceful. Our country dropped down 3 places than the last years.

Corruption - “Transparency International”

Transparency International published its annual “Corruption Perceptions Index 2010”. 1 to 10 points were assigned on each country’s prevalence of corruption. The index is calculated based on 13 different kind of measurements made between January 2009 and January 2010. Mongolia is ranked at 116th with 2.7 points.

Economic Freedom - “The Heritage Foundation” and “The Wall Street Journal”

The Heritage Foundation and The Wall Street Journal published their annual “Index of Economic Freedom 2011” The index scores nations on 10 broad factors with total 100 points and classifies them into 5 categories: absolute freedom, near freedom, average freedom and near no freedom and absolute no freedom. In 2010, Mongolia was ranked at 88th with 60 points. But this year Mongolia dropped down and ranked at 94th with classification of near no freedom.

Business Freedom: 67.7

-1.3

The regulatory framework continues to evolve, but the pace of reform has been sluggish. Starting a business takes an average of 13 days, compared to the world average of 34 days. Obtaining a business license takes less than the world average of 209 days. Bankruptcy can be lengthy and burdensome.

Business Freedom: 79.8

no change

Mongolia’s weighted average tariff rate was 5.1 percent in 2008. Some import and export restrictions, restrictions in services markets, import and export taxes, underdeveloped Infrastructure and inconsistent, inefficient, and corrupt customs implementation add to the cost of trade. Ten points were deducted from Mongolia’s trade freedom score to account for non-tariff barriers.

Fiscal Freedom: 83.3

+1.4

Mongolia has a low income tax rate and a moderate corporate tax rate. The individual income tax rate is a flat 10 percent, and the top corporate tax rate is 25 percent. Gambling and lottery activities are taxed at 40 percent. Other taxes include a value-added tax (VAT), an excise tax on alcohol and vehicles, and a dividend tax. In the most recent year, overall tax revenue as a percentage of GDP was 30.8 percent.

Government Spending: 49.6

– 7.1

In the most recent year, total government expenditures, including consumption and transfer payments, reached 41 percent of GDP. Despite falling revenues due to lower copper prices, spending remained high. The fiscal deficit widened to 6.5 percent of GDP. A Fiscal Responsibility Law that is meant to codify budget discipline is under consideration.

Business Freedom: 67.7

-1.3

Inflation has been extremely volatile, jumping to 26.8 percent in 2008 as world food and fuel prices soared and then plunging to 6.3 percent the following year, for an average of 11.5 percent between 2007 and 2009. Although most price controls and many subsidies have been phased out, the government influences prices through the public sector or through regulation, sometimes intervenes in the market to stabilize commodity prices, and still controls air fares and fuel prices. Five points were deducted from Mongolia’s monetary freedom score to account for measures that distort domestic prices.

Investment Freedom: 50

no change

In most cases, the government does not discriminate between foreign and domestic investors. Foreign investment in industries related to the extraction of petroleum and strategic minerals is subject to additional restrictions. The regulatory framework supporting investment is still developing, and regulations and investment-related laws are changed frequently. Rules may be inconsistently applied or misunderstood. Non-transparent bureaucracy can be prone to corruption, and contract enforcement is inconsistent. Residents and non-residents may hold foreign exchange accounts, subject to minimal restrictions. There are no restrictions on payments and transfers. Most credit and loan operations must be registered with the central Bank. Foreign investors may lease but not own land.

Financial Freedom: 60

no change

Restructuring of the banking sector has improved private sector access to financing. The government imposes few restraints on the flow of capital, and foreign investors tap domestic capital markets freely. State ownership of banks has been reduced, and the presence of foreign banks is considerable. The government is refining insurance regulation. Capital markets are not fully developed. A stock market was set up to facilitate privatization of state-owned enterprises but now functions as a regular exchange. During the recent global financial turmoil, non-performing loans increased, but the banking sector remains relatively well capitalized.

Property Rights: 30

no change

The enforcement of laws protecting private property is weak. Judges generally do not respect contracts and regularly ignore their provisions in their rulings. The legal system does recognize the concept of collateralized assets. There is no mortgage law. Pirated optical media are readily available and subject to spotty enforcement.

Freedom of Corruption: 27

-3.0

Corruption is perceived as widespread. Mongolia ranks 120th out of 180 countries in Transparency International’s Corruption Perceptions Index for 2009, a significant drop from 2008. The law provides criminal penalties for official corruption, which is perceived as serious and continuing at all levels of government, particularly within the police, judiciary, and customs service. Corruption-related arrests and convictions are rare, and allegations of public-sector corruption include cases involving cabinet-level officials.

Labor Freedom: 74.1

-1.8

Mongolia’s labor regulations are relatively flexible, but the labor market lacks dynamism. The non-salary cost of employing a worker is moderate, and dismissing an employee is not burdensome.

Charity Work - “Charity Aid Foundation”

International Charity Aid Foundation published its “World Giving Index”. In 2010, Australia was found as the most charitable nation. ACF is using the data gathered by Gallup on 153 countries of the world. The index is based on three questions asked from people: If they are donated money to an organization, If they are volunteered time to an organization and if they are helped a stranger, or someone they didn’t know who needed help in the past month. Mongolia is ranked at 67th place.

Petroleum Reserve

Ministry of Mineral Resources and Energy officially declared that Mongolia’s petroleum reserve is 1.6 billion tons. 119.2 million ton crude oil reserve is in Tamsag (Dornod aimag) only. Therefore, Mongolia is listed at 33rd place among the countries with oil extraction.

Living Standards - “Legatum Institute”

Legatum Institute published its annual “Legatum Prosperity Index”, the index ranks the world countries based on their living standards. Out of 110 countries, Mongolia was ranked at 60th place, dropped down 10 places than the last years. Ranking is based on 8 factors including economic fundamentals, entrepreneurship and innovation, governance, education, health, safety and security, and personal freedom. The following is the report by Legatum about Mongolia.

Fast Facts

Average Life Satisfaction	4.5 / 10 (2008 Est.)
Population	2.7 million (2010 Est.)
GDP per capita (PPP)	3,703 (2010 Est.)
GDP (PPP)	10.1 (2010 Est.)
Political System	Republic (2010)
Freedom House Rating	Free (2010)
Literacy Rate	97% (2008)
Life Expectancy (% of adult population)	67 years (2008)
Business Start-up Costs (% of Gross National    Income)	3% (2008)
83.8% of people believe society is  meritocratic*	(2008)
42.7% of people feel personal safety*	(2008)

Economy - Ranked 88th

Mongolia has both high inflation and high GDP growth, indicating mixed economic performance.

Mongolia’s annual rate of inflation is 25%, which is the seventh highest globally** and indicates a very unstable prices. However, other macroeconomic indicators are more positive. The rate of gross domestic savings is above average at 24.3% of GDP, while an unemployment rate of 2.8% is very low. Further, when asked, two-fifths* of Mongolians consider themselves employed, indicating the existence of a large informal labor market. Average GDP growth per capita was high at an average of 7.8% per annum from 2004 to 2008, but living standards are low as many Mongolians struggle to access affordable food and shelter, placing the country 81st on this variable. A low 52%* of the population expressed satisfaction with their standard of living and only 9.5%* believed there were sufficient jobs available; Mongolia places in the bottom 40 countries on both variables. Nonetheless, many Mongolians remain optimistic about future growth, placing the country 41st* on this variable. Mongolia ranks a low 106th in terms of its market size, and just 76th with respect to the amount of physical capital available to workers. However, high-tech exports constitute 7.5% of total exports and foreign direct investment continues to flow into the country; Mongolia places above average on both variables. The level confidence in financial institutions is above average at 72%*, placing Mongolia 30th on this variable. However, this positive assessment is somewhat contradicted by a high level of non-performing loans, which stands at 9% of total loans.

Entrepreneurship & Opportunity - Ranked 58th

Poor infrastructure and lack of government investment hinders entrepreneurial activity.

Innovative activity is low in Mongolia. The Mongolian government spends only 0.2% of its GDP on R&D, which also contributes to an extremely low percentage of ICT exports, placing Mongolia 97th on this variable. Just six-in-10* Mongolians believe the environment is conducive to entrepreneurship. While business start-up costs are the 27th lowest in the world at only 3% of GNI per capita, a poor technological infrastructure hinders entrepreneurial activity: only 35% of Mongolians own a mobile phone, internet bandwidth capacity is very poor and there is a below average number of secure internet servers per capita. Although business opportunities are limited, economic development is distributed relatively evenly across different socio-economic groups, ranking the country above average on this variable. Additionally, a high 84%* of Mongolians believe that hard work will get them ahead in life. No data were available on royalty receipts.

Governance - Ranked 81st

Mongolia’s democracy lacks efficiency and remains fairly unpopular with the public.

Mongolia ranks well for its democratic structures. There is a moderate level of competition within the executive and legislative branches of government and regulation of the executive is relatively well-established. The government of Mongolia affords its citizens almost unrestricted political rights, which results in a strong interaction between citizens and public officials, placing Mongolia 24th* on this variable. However, with less than 20 years since the last significant change in the establishment, the country places below average with respect to regime stability. The government is also highly inefficient. Mongolia lacks the checks and balances, which would ensure systemic accountability, ranking below the global average on this variable. Public confidence was low in 2008, with less than half* of respondents expressing their approval of the government. Mongolia ranks very poorly in terms of its efforts to help the poor and preserve the environment; low approval ratings place the country in the bottom 10* of the Index on these variables. Mongolians perceive there to be a high* level of corruption within the government and businesses. This may be a result of poor regulation of the business environment and a lack of regard for the rule of law; Mongolia places in the bottom third of the Index on these variables. Public confidence in both the military and judiciary is low; placing 64th* and 93rd*, respectively. Additionally, confidence in the honesty of elections is extremely low, with less than one-fifth* of the population expressing trust in Mongolia’s electoral processes.

Education - Ranked 49th

Despite poor investment in education, Mongolia has a comparatively well-educated workforce

Mongolia has a relatively weak educational system. The net primary enrolment rate is very low at 89%, placing the country 85th on this variable. While there is near gender equality in primary and secondary education, subjective indicators are not positive: only two-thirds* of people are satisfied with the quality of education in their local area and just three-quarters* believe that children have sufficient opportunities to learn, ranking Mongolia in the bottom half of the Index on both variables. These assessments may be related to a very high pupil-to-teacher ratio of 31-to-one, the 88th highest rate in the Index. However, gross secondary and tertiary enrolment rates are higher and Mongolia places in the top half of the Index on both variables. This may contribute to Mongolia's relatively well-educated workforce; on average workers have completed 2.5 years of secondary education and one year of tertiary education.

Health - Ranked 85th

Low levels of government expenditure contribute to poor public health in Mongolia

Mongolia does not perform well in objective indicators of public health. Infant mortality is very high at 3.5%, and malnourishment is amongst the world’s highest at 52%. Life expectancy, when adjusted for the number of healthy years lived, is just 56 years, placing Mongolia 83rd on this variable. Annual health spending per capita is roughly $150 (PPP). However, the country achieves a mixture of both positive and negative results with respect to healthcare provision. Rates of immunization against infectious diseases and measles are over 95%, placing Mongolia 14th on the Index, for this variable. Mongolia also has the 20th highest provision of hospital beds per capita in the world. Yet access to adequate sanitation facilities is very low at only 50% and, in 2008, only two-thirds* of the population were satisfied with the quality of water where they live. Mongolia has a higher than average death rate from respiratory diseases, and the incidence of tuberculosis is high, placing the country in the bottom quartile on this variable. According to a 2008 survey, subjective assessments of physical health place Mongolia in the bottom 20 of the Index: only 69%* of respondents were satisfied with their personal health and almost a third* reported health problems that affected their daily lives. Assessments related to mental health were more positive. Less than a third* of respondents had felt worried on the previous day and almost three-quarters* of people felt well-rested, placing Mongolia in the top third of the Index on these variables. However, only 34%* of respondents were content with the beauty of their immediate environment, the second lowest rate in the Index.

Safety & Security - Ranked 39th

High levels of property theft in Mongolia diminishes the perception of personal safety

Mongolia has very few refugees or internally displaced persons, placing fifth on this variable. Levels of communal conflict are also low with no signs of civil or ethnic struggle in 2008 and many* Mongolians feel safe expressing their political opinions. However, the government is sometimes responsible for acts of political violence in Mongolia. There is a moderate level of demographic instability – resulting from border disputes, ownership or occupancy of land, access to transportation outlets, control of religious or historical sites, or proximity to environmental hazards – but very few Mongolian professionals emigrate; the country ranks 18th on this variable. Over a fifth* of Mongolians had property stolen in the year prior to the survey in 2008, placing the country 91st on this variable. Levels of assault are somewhat lower, with 6%* of the population reporting muggings in the same period. Almost half* of Mongolians feel unsafe walking alone at night, placing the country in the lower quartile of the Index on this variable.

Personal Freedom - Ranked 87th

Restraints on individual freedoms correlate with perceptions of intolerance in Mongolia

Despite almost unlimited levels of freedoms in expression, association, belief, and personal autonomy, only half of the population indicates satisfaction with their freedom of choice. The latter variable places Mongolia amongst the bottom 10 in the Index. Only 49%* perceive their neighborhood to be a good place for immigrants and only 60%* believed it welcomes ethnic minorities, placing Mongolia firmly in the lower half of the Index on these variables.

Social Capital - Ranked 26th

Nine out of 10 Mongolians feel that they have family and friends to rely on in times of need

Mongolia places 15th* for the amount that citizens volunteer at an organization, and 41st* for the proportion of people who make charitable donations. However, people are less likely to help others outside these formal structures; only a third* of respondents had helped a stranger in the month prior to the survey in 2008, placing Mongolia 93rd on this variable. Yet, nine out of 10* respondents feel able to rely on family and friends in times of need and the marriage rate is 57%*, indicating strong access to familial networks. Access to religious networks may be weak, however, with a very low 12%* of respondents regularly attending places of worship. No data were available on levels of trust in Mongolia.

Internet Speed – “Speed.net”

Mongolia is ranked high in the “Speedtest.net Index”, the index compares and ranks consumer download speeds around world countries. Our country’s average consumer download speed is 8.13 mb/s, which places us 41st out of 185 countries. Average upload speed is 4.71 mb/s and ranked 20th.

Paying Taxes - “Pricewaterhouse Coopers”, “World Bank” and “IFC”

Audit and Consulting firm “Pricewaterhouse Coopers”, World Bank and International Finance Corporation published their annual “Paying Taxes Index”. This index measures the ease of paying taxes across 183 countries of the world covering tax level, average time to paying taxes and number of taxes. Mongolia was ranked at 21st for its tax level, at 67th for its average time to paying taxes and 140th for its existing number of taxes.

Quality of Life – “International Living”

International Living magazine published its annual “Quality of Life Index 2010”. The index is calculated based not on local people’s opinion but on tourist and temporary foreign residents opinion in that country. Out of 194 countries of the world France is ranked at the top with 87 points from possible 100 points. Mongolia is ranked at 95th with 57 points.
Our country is scored – Cost of Living 68, Culture and leisure 60, Economy 47, Environment 70, Freedom 83, Health 56, Infrastructure 52, Safety and Risk 64, and Climate 14 with cumulative score of 57.

Freedom – “Freedom House”

International human rights organization “Freedom House” published its annual “Freedom in the World 2010” report. The report covers 194 countries and 14 regions worldwide. All the countries are classified as Free, Partly Free or Not Free. The report index was calculated using scale from 1 to 7. 1 – 2.5 points mean “free”, 3 – 5 points mean “partly free” and 5.5 – 7 points mean “not free”. 89 countries were classified as “free”, 58 were “partly free” and 47 were “not free”. Mongolia were classified as “free country” with 2 points for political rights and 2 points for civil liberty.

Trade Logistics Development – “World Bank”

World Bank published its second annual “Logistics Performance Index” that covers 155 countries worldwide. This index is the assessment of trading sectors’ goal, responsibility and efficiency of logistics performance of the countries. Mongolia is ranked at 141st place.

Budget Transparency - “International Budget Partnership”

International organization “International Budget Partnership” published its annual research on budget transparency of the countries of the world. Mongolia scored 60 points out of 100 is the highest among Center Asian countries. South Africa is at the top with 92 points for its state budget transparency and Mongolia is ranked at 22nd.

Key Findings

The scores for 92 questions from the Open Budget Survey 2010 are used to compile objective scores and rankings of each country’s relative transparency. These scores constitute the Open Budget Index (OBI).

Mongolia’s OBI 2010 score is 60 out of 100, which is among the highest in the Central Asia region and well above the worldwide average (42). Mongolia’s score indicates, however, that there is still substantial room for improvement in the amount of budget information the government provides to the public. Remaining deficiencies still make it challenging for citizens to hold the government accountable for its management of the public’s money.

Mongolia stands out for the remarkable progress it has achieved in recent years. Its score on the OBI doubled from 18 in the 2006 Survey to 36 in 2008 and further increased by 24 points to 60 in the 2010 Survey. This is due to the fact that the government began to publish budget documents that previously had not been available to the public, including the Executive’s Budget Proposal in 2007 and the reintroduction of public Year-End Reports in 2008. Moreover, between the 2008 and 2010 surveys, the Executive’s Budget Proposal was expanded from a 50-page document to a 300-page document, thus providing more comprehensive information on revenues and expenditures.

Information in Public Budget Documents

Adequacy & Availability of Eight Key Budget Documents

Document	Level of Information Grade*	Publication Status
Pre-Budget Statement	A	Published
Executive’s Budget Proposal	B	Published
Enacted Budget	B	Published
Citizens Budget	E	Not Produced
In-Year Reports	A	Published
Mid-Year Review	E	Produced, Not Published
Year-End Report	C	Published
Audit Report	C	Published

* Grades for the comprehensiveness and accessibility of the information provided in each document are calculated from the average scores received on a subset of questions from the Open Budget Survey 2010. An average score between 0-20 (scant information) is graded as E; 21-40 (minimal) is graded as D; 41-60 (some) is graded as C; 61-80 (significant) is graded as B; and 81-100 (extensive) is graded as A.
The Executive’s Budget Proposal is the government’s most important policy instrument. It presents how the government plans to raise revenues and where these funds are allocated, thus transforming policy goals into action. In Mongolia, while the budget proposal is now fairly comprehensive there are still gaps in the following areas:
It lacks information on certain fiscal activities th at can have a major impact on the • government’s ability to meet its fiscal and policy goals, including information on financial and other assets held by the government and information on tax expenditures. It does not present detailed information on the impact of different macroeconomic • assumptions on the budget.
A Pre-Budget Statement sets forth the broad parameters that will define the government’s forthcoming budget. Mongolia publishes a comprehensive Pre-Budget Statement.
The Enacted Budget becomes a country’s law and provides the baseline information for all budget analyses conducted during the budget year. In general terms, the Enacted Budget should provide the public with the data it can use to assess the government’s stated policy priorities and hold it to account. Mongolia publishes a fairly comprehensive Enacted Budget, but it does not present the approved budget for all programs.
A Citizens Budget is a nontechnical presentation of a government’s budget that is intended to enable the public — including those who are not familiar with public finance — to understand a government’s plans. Mongolia does not produce a Citizens Budget.
In-Year Reports provide a snapshot of the budget’s effects during the budget year. They allow for comparisons with the enacted budget figures and thus facilitate adjustments. Mongolia publishes comprehensive In-Year Reports.
The Mid-Year Review provides a comprehensive overview of the budget’s effects at the mid-point of a budget year and discusses any changes in economic assumptions that affect approved budget policies. Information in this report allows the government, legislature, and the public to identify whether or not adjustments related to revenues, expenditures, or borrowing should be made for the remainder of the budget year. Mongolia prepares a Mid-Year Review but does not make it available to the public.
The Year-End Report compares the actual budget execution to the Enacted Budget. Year-End Reports can inform policymakers on tax policies, debt requirements, and major expenditure priorities, facilitating modifications for upcoming budget years. Mongolia publishes a Year-End Report, but it is not sufficiently comprehensive. It does not, for example, include explanations for the difference between the original performance indicators and the actual outcome.
The Audit Report is an evaluation of the government’s accounts by the country’s supreme audit institution (SAI). It reports whether the government has raised revenues and spent national revenue in line with the authorized budget, whether the government’s bookkeeping is balanced and accurate, and whether there were problems in the management of public funds. Mongolia publishes an Audit Report, but it does not contain information about audits of extra-budgetary funds.
Public Participation and Institutions of Accountability
Beyond improving the availability and comprehensiveness of key budget documents, there are other ways in which Mongolia’s budget process could be made more open. This includes ensuring the existence of a strong legislature and supreme audit institution (SAI) that provide effective budget oversight, as well as providing greater opportunities for the public to participate in the budget process.

Are oversight bodies effective in their budget role?

Oversight Institution	Strength**
Legislature	Moderate
SAI	Moderate

** Legislature and SAI strengths are calculated from the average scores received for a subset of questions from the Open Budget Survey 2010. An average score between 0-33 is graded as weak, 34-66 as moderate, and 67-100 as strong.
According to the Open Budget Survey 2010, budget oversight provided by Mongolia’s legislature is inadequate because it does not hold open budget discussions at which the public can testify.
According to the Open Budget Survey 2010, budget oversight provided by Mongolia’s SAI is inadequate for the following reasons:

The SAI does not have sufficient resources to meaningfully exercise its mandate;

1. There is limited legislative scrutiny of audit reports; and
2. It does not issue reports on the follow-up steps taken by the executive to address audit
3. Recommendations.

Recommendations:
Mongolia should:

• publish its Mid-Year Review
• produce and publish a Citizens Budget
• provide opportunities for the public to testify at legislative hearings on the budget;
• empower the SAI to publish a comprehensive Audit Report, including information on extra- budgetary funds; and
• pass legislation that codifies the availability of budget information to the public.

According to the OBI researcher from Mongolia, this would help ensure the sustainability of recent reforms.

Info: Surveys: Mongolia in 2010-2013