One of the major objectives of the World Bank-funded Strengthening Fiscal and Financial Stability Project is to support the Ministry of Finance of Mongolia in learning from international experience in government debt management, policy development, and strategy planning.
Within the objectives, the Ministry of Finance of Mongolia took step by step measures by taking on consultancy services, organizing training, holding a public discussion of professionals at vast levels. These measures contributed to adopting the MTDS 2019-2022 approved by Parliament Resolution # 55 on May 30, 2019.
Government debt management strategic document for 2019-2022 reflect 5 objectives which contemplate 19 measures for its implementation.
In accordance with provision 14.3 of the Debt Management Law, the strategic document provides an analysis of total external debt, the current state of government debt, possible sources of financing, factors affecting the government's debt portfolio in the medium term, and debt portfolio risk.
There is an opportunity to comprehensively coordinate debt management issues by elaborating the priorities for each of the debt management strategy objectives and identifying stakeholders and their roles.
In developing this strategy document, the World Bank and the International Monetary Fund methodology and model for developing a medium-term debt strategy were used to conduct cost and risk analysis of the current structure of government debt to define government debt management medium-term objectives, measures, and results to be achieved.
Within the framework of this approved strategy and its set objectives, consulting services to improve the information organization of old loans and to improve procedural structures are being benefited by risk management and control, analysis and related updates, and improvements in related regulations.
WORLD BANK WORKING GROUP MET WITH PIU AND IMPLEMENTING ORGANIZATIONS REGARDING THE COMPLETION REPORT OF THE STRENGTHENING GOVERNANCE IN MONGOLIA PROJECT
Concerning the Strengthening Governance in Mongolia project, which was completed on February 28, 2023, the World Bank working group to develop the project completion report had an official meeting with Project Implementation Unit (PIU) and implementing organizations on March 30, 2023. The purpose of the working group meeting is to review the implementation of the project, the results achieved, and the fulfillment of the project indicators.
PERFORMANCE BASED FINANCING: INSPIRING NEW APPROACHES TO PUBLIC FINANCIAL MANAGEMENT IN HEALTH AND EDUCATION
Performance based financing (PBF) links funds or payments to service providers to results achieved and gives them considerable autonomy in the use of these funds. The strategic approach is appealing to many individuals and organizations as it motivates them to perform better and channels resources directly to the frontlines. This in turn fosters greater accountability. Using this approach has been popular in different sectors with some promising results emerging.
AN INTEGRATED SYSTEM FOR RESULTS-BASED MEDIUM-TERM BUDGET PLANNING: IN ACHIEVING THE GOALS OF IMPROVING BUDGET PLANNING, BUDGET EFFICIENCY AND PROGRAM OUTCOME.
Under the scope of improving public financial management, Mongolia is aiming to introduce result-oriented medium-term budgeting, transitioning from the traditional input-based budgeting. This goal is aligned with development policy of Mongolia to shift from medium-term fiscal framework (MTFF) to medium-term expenditure framework (MTEF).
The MOF is entering the new phase of PFM Reform Action Plan
Within the framework of the European Union financed, World Bank managed “Strengthening Governance in Mongolia” project, the Ministry of Finance, in compliance with the “Sustainable Development Vision 2030” and the “Action Program of the Government of Mongolia for 2016-2020”, has approved and implemented the Public Financial Management (PFM) Reform Strategy and the Action Plan for 2018-2022. The overarching objective of the strategy was to improve governance and achieve effective resource allocation and efficient public service delivery. The implementation status of the PFM Action Plan is indicated as “Certain results have been achieved” at the rate of 85 percent.
LAUNCHED BETA VERSION OF THE REDEVELOPED GLASS ACCOUNT PORTAL
The Ministry of Finance Mongolia has developed and successfully launched the new version of the Glass Account Portal in 2023 within the framework of the Strengthening Governance in Mongolia Project jointly implemented by the EU and the World bank.
New systems and services are added in the Intermediate service platform for fiscal and financial systems
The Ministry of Finance Mongolia has developed and successfully launched the Intermediate Service Platform (ISP) in 2022 within the framework of the Strengthening Governance in Mongolia Project. The main purpose of the system is to provide a possibility of information /web services/ exchange between the independent systems of the Ministry of Finance and other organizations in a easy and flexible way. In addition, it is solving the issues of overlapping connections and development between many information systems and organizations, transferring them to a unified standard, making it has no complexity, and more secure.