SovereignWealthFunds.comMongolia Fiscal Stability Fund
Mongolia Fiscal Stability Fund: what it invests in
Geography Mainly domestic
Mongolia Fiscal Stability Fund: how big it is, and on what basis
Mongolia Fiscal Stability Fund: what it publishes
Published 1 · Partly 2 · Not published 7
Our 10 item score. It measures what is public, not how well a fund is run.
At a glance. Mongolia's Fiscal Stability Fund is a budget stabilisation account run by the Ministry of Finance under the 2010 Fiscal Stability Law. Windfall mineral revenue is saved when prices run above long-term averages, and the fund covers shortfalls when they fall. The government added savings to it in 2024, but it does not publish a separate balance. S1 S3 S4
Key points
- Set up alongside the Fiscal Stability Law of 2010, with debt, deficit and spending growth limits. S1
- When one mineral brings in over 3 percent of fiscal revenue, the windfall at long-term prices is saved here. S3
- Revenue shortfalls trigger transfers from the fund under the Law on Government Special Funds. S3
- Savings were added in 2024, a year of strong mining revenue. S4
- Balances have been held in deposits at domestic commercial banks. S3
Interesting facts
Mandate and goals
The fund smooths the state budget against swings in mineral revenue by saving windfalls and releasing money when revenue falls short. S3
How it invests
| Industries | Financial services. Sector agnostic S3 |
|---|---|
| Asset classes | Cash and money markets S3 |
| Stages | Credit S3 |
| Geography | Mainly domestic. Deposits with commercial banks in Mongolia S3 |
| Direct / through funds / co-invest | Yes / No / No S3 |
| Managed in house | 100 percent S3 |
| Ticket size | Not applicable; a budget stabilisation account. S3 |
| External managers | None S3 |
| Co-investment programme | None S3 |
Past investments
The fund has not published a list of investments.
Case studies
The mineral windfall rule S3 S4
- What: Revenue from any mineral above 3 percent of fiscal revenue is valued at a long-term average price; the excess goes to the fund and shortfalls are drawn from it.
- When: Since 2010
- Size: Not published
- Why: Mongolia's budget depends heavily on copper and coal prices.
- Outcome: Savings were added again in 2024 as mining revenue rose.
Investment process
The Ministry of Finance applies the Fiscal Stability Law and the Law on Government Special Funds; Parliament must approve any suspension of the rules. S3
| Committee | Role |
|---|---|
| Fiscal Stability Council | Oversight of fiscal rules, set up by parliamentary resolution S1 |
- Budget revenue is projected using long-term mineral prices. S3
- Windfalls above the projection are saved in the fund. S3
- Shortfalls are covered by transfers back to the budget. S3
How to approach: No approach route; the fund is a budget account. S6
Size and returns
Leadership
The fund does not publish named leaders.
Governance and transparency
- Legal basis: Fiscal Stability Law (2010) and Law on Government Special Funds (2006) S1 S3
- Oversight: State Great Hural and the Fiscal Stability Council S3 S1
- Auditor: No separate audited fund report published S3
- The IMF urges Mongolia to avoid frequent changes to its fiscal rules. S7
- Not an IFSWF member. S2
Transparency score: 2.0 of 10 (band 1 of 5). Our own 10-item rubric; see the methodology page.
History
For family offices
A budget stabilisation account with no investment programme; Mongolia's investing funds are separate entities. S3
Reports
- IMF Mongolia 2025 Article IV staff report: https://www.elibrary.imf.org/view/journals/002/2025/265/article-A001-en.xml S4
- IMF Mongolia 2026 country report: https://www.elibrary.imf.org/view/journals/002/2026/219/article-A001-en.xml S8
Common questions
What is the Fiscal Stability Fund?
A Mongolian budget account that saves mineral windfalls and covers revenue shortfalls. S3
How big is it?
No current balance is published; it held about USD 250 million in 2012. S5
Who manages it?
The Ministry of Finance. S1
Is it an IFSWF member?
No. S2
Related profiles
- Bhutan Economic Stabilization Fund (BESF) Bhutan · Nu 167M
- Stabilization Fund of Turkmenistan Turkmenistan · Not disclosed, estimate
- Taiwan National Stabilization Fund Taiwan · NT$500B funding ceiling
- Government Pension Investment Fund (GPIF) Japan · JPY 293.6T
- China Investment Corporation China · USD 1,567B
- GIC Private Limited Singapore · About USD 1.16T, estimate
All sovereign wealth funds in Asia · All stabilisation funds · All funds in Mongolia
Sources
- S1Natural Resource Governance Institute, Can Mongolia's Fiscal Stability Council improve fiscal discipline?
- S2IFSWF, members list
- S3ADB technical assistance report, Revenue Management in Mongolia
- S4IMF, Mongolia 2025 Article IV consultation staff report
- S5Managing Wealth and Opportunities in Mongolia, final report 2012
- S6Ministry of Finance of Mongolia
- S7IMF, Executive Board concludes 2025 Article IV consultation with Mongolia
- S8IMF Staff Country Reports, Mongolia 2026
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