Budget Transparency Law passed

On July 1, 2014, the day the Parliament closed its Spring 2014 Session, it approved the Budget Transparency law, initiated and submitted to the Parliament by President Elbegdorj.

The Policy and Action Program of the President of Mongolia for 2013-2017 set forward, inter alia, a policy objective to establish transparency in accounting and financial practices of public (budgetary) organizations by introducing a concept of a “glass account”, a transparent system of reporting on financial transactions of public organizations. The Decree of the President of Mongolia of September 19, 2012, endorsed a National Mid and Long Term Policy Paper on Decentralization through Direct Democracy and Citizen Participation. One of the policy goals of this document was to develop and adopt the budget transparency law. The Budget Transparency Law constitutes one of the fundamental legal mechanisms to institute a Smart Government in Mongolia.

The Budget Transparency Law, which is now being widely acknowledged by the Mongolian general public and entering into daily lexicon of Mongolians as simply “A Glass Account Law”, enables citizens’ control and monitoring of the spending of the taxpayers money. By publicly reporting the financial decisions and stances on disbursement and disposal of fiscal funds Mongolia will have established an effective financial prudence and accountability system. The law will help prevent corruption, bribery, abuse and misuse of public funds and official position. It will help build a smarter, more responsible and accountable government.