Resource information
Ulaanbaatar's (UB) population has
swollen from half a million in 2001 to approximately 1.2
million in 2011, accounting for over 40 percent of the
country's population. This trend is likely to continue
as economic growth is increasingly concentrated in UB. With
its growing population and concerns in rising inequality,
the city is facing increasing pressure to maintain and
expand service provision (especially infrastructure). The
local tax on wages is expected to continue to provide
substantial revenues to the UB government, which will assist
the growing demand for services. Additionally, a new
'capital city tax' is expected to come into effect
in 2013. The decision of the central government (CG) to
pursue further decentralization gives greater leadership to
the UB government and its districts. It also provides local
broader decision-making authority as well as opportunity for
citizen's participation and for the improvement of
governance and transparency. Therefore, a key challenge for
UB and its districts is ensuring that the local fiscal
system is sound and ready to handle a greater volume of
revenues to achieve sustainable and inclusive growth. The
city also needs to develop a robust and transparent fiscal
management system if it is to make an effective use of new
revenue sources. The main objective of this study is to
understand the inner workings of the municipal finance
system in Ulaanbaatar and its districts.
