5/19/2021
Within the Strengthening Fiscal and Financial Stability Project, concerted efforts for improving MACROECONOMIC POLICY TOOLS AND ENHANCING THE RESEARCH CAPACITY have been conducted. With the project support, the Macroeconomic Policy Division (the Economic Policy Department) of the Ministry of Finance has increased the utilization of mathematical modeling for the efficacy of fiscal policy formulation as one of the beneficiary agencies.
A mathematical model in economics is a scientific discipline that applies mathematical concepts and language to represent theories and analyze socio-economic problems in economics via computing activities. The use of mathematical economic modeling provides a more quantitative answer to questions such as the future growth and decline of Mongolia's economic fundamentals, such as GDP, the balance of payments, and industrial output, and how fiscal policy decisions affect the economy.
With the project assistance, the Macroeconomic Policy Division is able to perform macroeconomic calculations and analysis in a more comprehensive and efficient manner using a variety of tools.
Some examples include the development of a multi-variable Proxy Means Testing (PMT) model based on the Machine Learning Technique for estimating the demography poverty rate, , which is used to calculate the poverty rate using non-income methods based on household socio-economic survey data.
With machine learning algorithms, the PMT model has been improved in variable selection and model performance with minimal human intervention. An input-output model-based analytical tool has been developed to present the interdependencies between specific public investment programs in up to 55 sectors. In the past, a team of 3 experts would carry out such activities in 5 business days. However, the development of this tool has made it possible to undertake such activities with a single staff in one hour.
As mentioned above, improving and re-developing the mathematical model-based economic calculation and analysis methods and tools, and introducing them into the operation of the beneficiary will improve the accuracy of calculations and research and provide information to fiscal policymakers and decision-makers. With strengthened capacity, the beneficiary had initiated preparing a diagnostic report which would cover the areas of 1) real sector; 2) fiscal policy; 3) external sector; 4) monetary policy, and 5) Global economy. The report has been issued regularly to the Ministry of Finance Staff.
Furthermore, the project also supports the beneficiary body with problems on an ad hoc basis. In the recent case, the Macroeconomic Policy Division was responsible for selecting and prioritizing +100 projects and activities to be implemented in the priority sectors and estimating their impact on the economy, and successfully presented to the Cabinet meeting. In addition to representing all trade and financial relations of a country with foreign markets, for the first time, the terms of the balance of payments, which is the basis for a stable and immune economy, were calculated for each ministry and introduced to government members.
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WORLD BANK WORKING GROUP MET WITH PIU AND IMPLEMENTING ORGANIZATIONS REGARDING THE COMPLETION REPORT OF THE STRENGTHENING GOVERNANCE IN MONGOLIA PROJECT
4/3/2023
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. |
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PERFORMANCE BASED FINANCING: INSPIRING NEW APPROACHES TO PUBLIC FINANCIAL MANAGEMENT IN HEALTH AND EDUCATION
3/23/2023
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. |
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AN INTEGRATED SYSTEM FOR RESULTS-BASED MEDIUM-TERM BUDGET PLANNING: IN ACHIEVING THE GOALS OF IMPROVING BUDGET PLANNING, BUDGET EFFICIENCY AND PROGRAM OUTCOME.
3/7/2023
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). |
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The MOF is entering the new phase of PFM Reform Action Plan
2/28/2023
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. |
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LAUNCHED BETA VERSION OF THE REDEVELOPED GLASS ACCOUNT PORTAL
1/20/2023
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. |
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New systems and services are added in the Intermediate service platform for fiscal and financial systems
1/11/2023
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. |
