Ulaanbaatar, Mongolia, June 13 (AP) — In a significant political shift, Mongolia has welcomed a new prime minister, Zandanshatar Gombojav, after widespread protests led to the resignation of his predecessor. Formerly the speaker of parliament, Zandanshatar was approved by a considerable majority in a parliamentary vote late Thursday night.
This event ends a period of political instability, with Mongolia—a young democracy of 3.4 million that lies between China and Russia—facing daunting challenges such as high inflation, a looming government budget deficit, and potential power shortages in the upcoming winter.
Zandanshatar, addressing the parliament before his election, emphasized the necessity of reducing government spending by approximately USD 640 million to avert a significant revenue gap. "Revision of the budget has become inevitable," he stated, pledging to present a new budget proposal to parliament in the following week.
A former banker, Zandanshatar, 45, studied economics in Russia and served as vice director of a leading commercial bank in Mongolia. He held the position of parliament speaker from 2020 to 2024 and later managed the president's office after losing his parliamentary seat last year. Additionally, he was a visiting scholar at Stanford University in California from 2014-16.
His predecessor, Oyun-Erdene Luvsannamsrai, resigned after losing a confidence vote in parliament. His administration was marred by protests stemming from allegations of excessive spending by his son. Many Mongolians believe their country’s mineral wealth benefits only politicians and their associates, rather than the broader population. Poverty remains a significant issue in this sparsely populated nation.
Zandanshatar has committed to ensuring that economic growth benefits all Mongolians. He promises to initiate tax reforms aimed at easing the financial burden on the middle class while raising taxes on luxury items and individuals with exceptionally high incomes.
In the parliamentary vote, he secured his leadership position with 108 votes in favor and 9 against, with 9 members absent from the 126-member parliament. (AP)
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