Budget of 2010 was under discussion. Draft budget law was criticized by many MPs. MP and Minister for Finance S.Bayartsogt has explanation.
Q: President said that budget spending hasn’t decreased, small power to the local self governance and reform takes long to take effect. What will be your answer? Can budget spending be decreased?
Minister S.Bayartsogt: There are few expenses decreased in the draft budget law. It is true that budget spending is not that much decreased. Also the budget must be presented in relationship with the newly adopted “Law on Human Development Fund”. Therefore certain reforms were allowed in the budget law. I believe that budget of 2010 can be the ignition of budget reform.
Q: SGK returned Social Insurance Law Draft. Why?
Minister S.Bayartsogt: Social Insurance Fund can’t support itself; therefore it had loss in 2008-2009. It will have same in 2010. Hence we strived to correct the social insurance structure. There is an issue of how much money in aggregate of salary for how long, every pensioner will benefit from Social Insurance Fund. As of now, people benefit 52,5% of their entire salary, men for 13 years and women for 16 years. But if it continues as it is now, Social Insurance Fund cannot support this structure. If 52,5% of the total salary is distributed, men can benefit only for four years and women for 6 years. But if it will follow the length of benefiting period, men will benefit 30% and women 20% of their total salary. This coordination was not supported.
The budget contributes ₮246.3 billion to the Social Insurance Fund. But the main issue is that the Fund can support its structure. It is not the issue of the pension size of this year, but of whole pension structure.
Q: How much money is paid by and how it was planned to be increased?
Minister S.Bayartsogt: As for now, it is 10% by employer. We proposed to increase it by 1,5%. It is not that big increase. But it was rejected. Therefore, it will be covered by the tax income.
Q: But taxpayers’ load is increased? Taxpayers will pay more then?
Minister S.Bayartsogt: Yes, the budget is heavily based on tax income. Therefore, taxpayers have to pay more.
Related post
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/tny_au_en_uskg_2.gif)
Loading ...