Mongolia Business and Mongolian Daily Business News

MPs have their voice on the approved budget

Q: Economists criticize the budget. Approval of budget was because of the world financial crisis or did the Ministry of Finance work badly?
A: The draft law on budget was presented without consideration of financial crisis and copper commodity price fall. World financial crisis hasn’t had so much effect on Mongolia, but it severely affects the foreign direct investment in Mongolia. If the copper commodity price remains stable, Mongolia Development Fund would provide almost 40% of the Mongolian State budget. Today’s situation suggests us to adjust the budget prediction down to the earth. The expense decreased by only 50 billion MNT. Actually, the social welfare is not precise enough and wasteful. There is an issue of how to cover the budget loss. Some say foreign aid and loan will recover it. But it really depends on budget loss. As for the previous years, the loss was small and can be recovered by gradual injection, but now it is helpless.

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