Subsidies are intended to reduce inequality, boost productivity, and increase social well-being. However, with Mongolia’s total subsidy costs climbing by an average rate of 26% annually since 2008, it is time to evaluate whether these funds are truly meeting their objectives.
This policy brief examines the current landscape of subsidies in Mongolia, with a deep dive into the three sectors receiving over 80% of total funding: Agriculture, Energy, and Public Transport. It questions whether these allocations result from stable long-term policy or volatile political cycles and offers critical recommendations to improve transparency, determine efficient spending levels, and track actual results.
