Specifically, the overpopulation of livestock affects pasture degradation and desertification. It has been challenging for herders and local governments to implement sustainable pasture management, keep the number of animals at a reasonable level, and increase the profits from a single animal. Herders increase the number of livestock to multiply their income and improve their livelihood. It is also related to traditional attitudes and mindsets. However, pasture resources have become increasingly scarce, and herders are affected by natural disasters such as drought and dzud.

In the summer of 2022, all of Uvurkhangai Province was dry and in poor condition, but the pasture water supply increased by 34.5 thousand hectares. The contributing factor was social, carried out through proper management rather than environmental change. The Citizens' Representative Khural (CRK) of Uvurkhangai Province, with support from the Strengthening the Institutional Capacity of Local Authorities (SICLA) project funded by the Swiss Agency for Development and Cooperation (SDC) and implemented by the Cabinet Secretariat (CabSec), organized an extensive discussion on sustainable pasture management and the Law on Livestock Tax. The CabSec; Ministry of Food, Agriculture and Light Industry; chairpersons, lead representatives, and secretaries of the CRKs of the Khangai region; the chairpersons of the CRKs of other soums (districts); the Uvurkhangai Province Governor's Office; the Department of Agriculture, Livestock, and Veterinary; and tax department representatives participated in discussions related to pasture management. The discussion provided a general understanding of the Law on Livestock Tax, and in particular, the concept of the law that local CRKs should understand to determine the percentage of livestock tax revenue based on pasture capacity and the number of animals in their area and how to use the funds collected from livestock tax revenue to improve pasture conditions and management. This fruitful discussion resulted in an improved understanding of the law’s application.

For instance, at the national level, the financial knowledge and capacity of local councils to fulfill their functions and manage pastureland are displayed with a few numbers and facts. The Law on Livestock Tax income increased from 1,325.8 million MNT in 2021 to 1,532.2 million MNT in 2022, and 64 new wells were built or repaired in pastureland areas. Thirty-six of them were built in 2022. In addition, many interventions and investment activities were completed, such as preparing fodder resources, improving livestock breeds, establishing hay fields, installing fences, rat extermination, growing animal fodder, stocking raw livestock feed, buying equipment for washing animals, and providing training workshops for herders.

As a result of discussions on problems faced in implementing the Law on Livestock Tax, which was initiated by the SICLA project in close collaboration with the General Department of Taxation, involving the chairs and secretaries of 330 soum CRKs and the inspectors of all soum tax departments, the soum CRKs of Uvurhangai Province learned to manage pastures properly by setting taxes in line with pasture capacity and finding the financial resources to implement measures to improve pastures. By correctly understanding and applying the contents and concepts of the Law on Livestock Tax and benefiting from it, 36 new engineered deep drilling wells were built and put into use with 1,532.2 million MNT from 2022 livestock tax income (385.0 million MNT) from the local budget.

T. Gonchigdorj, Secretary of the Uvurkhangai Province CRK, said that in addition to the efforts made by the soum CRKs of Uvurkhangai province, the SICLA project was a great support. He emphasized, "The implementation of the Law on Livestock Tax is not only a great financial incentive to undertake the functions assigned to the CRKs as stipulated in the Law on Administrative Units and Their Governance (LATUG), but the knowledge gained from the series of discussions organised by the SICLA project is invaluable for the local councils to understand the nature of the Law on Livestock Tax correctly and to properly manage and implement pasture management."

To introduce strengths and changes made to the LATUG and Law on Livestock Tax to herders and enable them to apply these laws effectively, the example of Uvurkhangai Province shows that the SICLA project has made a valuable contribution. Discussions with multi-stakeholder engagement and law promotion activities were carried out within the framework of the SICLA project. As a result of all these combined interventions by the project and local authorities, through the proper application of livestock tax policy, such as keeping the number of animals at an appropriate level, managing pastures, and improving pasture water supplies, tangible results were realized. Balanced and correct policies, optimal solutions, and incentives are bearing fruit in the lives of local citizens.

For more information, please visit CabSec website.