EU supports Mongolia in boosting employment and transparency amid COVID-19 pandemic
The European Union supports Mongolia’s efforts in boosting employment and improving transparency in public finances with a grant of €50.8 million. This is the first budget support programme in Mongolia, and will also address the social and economic consequences of the COVID-19 pandemic.
The Ambassador to the European Union to Mongolia Mr Traian Hristea and the Minister of Finance Mr Khurelbaatar have today signed the Financing Agreement for the EU Budget Support programme of €50.8 million. An upfront disbursement of €16 million will support the efforts of the Government in fighting the social and economic consequences of COVID-19.
The programme will support the Government of Mongolia in implementing reforms, notably its employment policy and its public finance management sectors, including tax reforms. It will help improve skills for employability, promote decent work and formal employment, mobilise domestic resources, increase spending effectiveness and strengthen state and non-state actors’ ability to oversee public finance management.
The disbursements will happen through fixed and variable tranches complemented with dedicated technical assistance. Over the next 4 years, the EU will disburse a grant of €43 million euros. As part of this programme, the EU is partnering with the United Nations Development Programme, the United Nations Food and Agriculture Organization, International Labour Organization and the United Nations Industrial Development Organization to deliver a €7.4 million technical assistance project. It will focus on transparency and oversight of the budget as well as employment creation in the non-mining sectors for youth and for persons with disabilities.
It is the first-ever EU Budget Support programme in Mongolia. The Action is a Sector Reform Budget Support on Employment of €50.8 million over four years. It builds upon the achievements of past and ongoing EU projects in the two sectors of the 2014-2020 multi-annual indicative programme, namely strengthening governance of revenues and improving employment opportunities.
The European Union will work closely with the Ministry of Finance and the Ministry of Labour and Social Protection to monitor closely the progress on the reform implementations.