Mongolia's tax and governance efforts to be improved
The Strengthening ICT Systems for Efficient and Transparent Public Investment and Tax Administration Project will streamline processes for tax administration and public investment.
The Asian Development Bank approved USD 25 million loan to help the Government of Mongolia improve its tax administration and public investment management using information and communication technology (ICT). The Strengthening ICT Systems for Efficient and Transparent Public Investment and Tax Administration Project will streamline processes for tax administration and public investment in line with international good practice. It will support the Mongolian Tax Authority (MTA) in its tax collection efforts by establishing an information system and providing required ICT infrastructure—network, security, computing, and storage infrastructure—to host it. This will allow the government to identify current and prospective taxpayers. The project will support the Budget Investment Department (BID) to develop an ICT-based public investment management information system to help the government select the investment projects that will bring most benefits to the country and better manage them. Government staff, notably those from MTA and BID, will also be trained in the operations and maintenance of these information systems. Mongolia’s current tax administration system consists of well-defined business processes. However, the existing ICT systems for tax administration in the country are fragmented and inefficient. This is also true of the country’s public investment management system, which has caused delays in some investment projects, leading to cost overruns for the government. The Mongolian economy’s shift in the late 1990s from a reliance on livestock herding to focusing on mining has made the country’s finances highly vulnerable to fluctuating global commodity prices.
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