Since 1991 the rapid democratic reforms and transition to the free market economy in Mongolia created a disparity in many social strata in urban and rural areas. This deeply affected on the educational system as well. The Government of Mongolian has declared education as the fundamental of development, therefore, there is an urgent demand to study the current educational issues and make efforts to eliminate the disparity existing in urban and rural areas. Budget planning, funding, implementation and examining school budget management and limitations become priority issues in order to carry out a thorough examination on the current education system and the most urgent issues including budget limitations. This study attempts to investigate the current education policy and management in Mongolia, the high school budgeting in particular, in the period since 2002 when the renewed education policy was adopted in Mongolia. Based on the examination of the relevant legal acts and study materials, interviews with relevant stakeholders and survey conducted in the sample schools, the researcher determined the current issues focusing on the budget planning and implementation in the sample schools.