On November 19, 2024, Mongolian President U.Khurelsukh exercised his constitutional authority to veto the entire 2025 Budget Law and its associated legislation. This decision, announced by G. Zandanshatar, the Head of the Presidential Office, signals the President’s dissatisfaction with the budget’s current framework and adherence to legal principles.
Grounds for the Veto
The President outlined two main justifications for his veto:
1. Efficiency and Fiscal Responsibility: U.Khurelsukh emphasized that the state budget must prioritize economic efficiency and avoid wasteful expenditures.
2. Violation of the Rule of Law: The adoption of amendments to the budget was deemed to have created potential conflicts with the core principles of legal governance.
Budget Overview and Parliamentary Approval
The vetoed 2025 Budget Law had projected state expenditures of 26.5 trillion tugriks, with a consolidated budget deficit of 1.9 trillion tugriks. It was approved by Parliament on November 8, 2024, with majority support.
What Happens Next?
According to Mongolia’s Constitution, Parliament is now obligated to reconsider the veto within 14 working days. For the veto to be overridden, two-thirds of the members of Parliament must vote against it. If the veto stands, the government will have to revise and resubmit the budget for approval.
This veto marks a critical juncture in Mongolia’s fiscal policy, as the country faces mounting economic challenges and the need for sustainable financial planning.
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