Most Mongolian households received social assistance (Social Welfare) benefits which in 2019 cost 2.1% of GDP or about 6.8% of the budget. Such assistance is provided almost entirely under categorical programs for children, the elderly, the disabled and women with four or more children without means testing. Although several programs indirectly impact poverty because of the poverty incidence in the target groups, technology in place could more effectively channel resources to the poor and improve the welfare of the poor and vulnerable with limited additional cost. Stronger reductions in poverty could be achieved by tapering additional benefits for poor households including recipients of the Child Money Program, disability and elderly programs. Increasing the coverage and benefit level under the Food Stamp Program can also improve welfare outcomes. Other recommended reforms include measures to strengthen the Integrated Household Database and proxy-means testing, introduction of activation measures, and establishment of a framework for adaptive social assistance in the face of economic and climatic shocks.