Daily Business News Mongolia

Party group meeting at the State Great Khural held series of meeting last week. Another working group was established by the two parties with purpose of solving the gap in the budget due to copper price fall. They wasted some time in predicting copper price in the next year which was already set at6 6700 US$ per m/t. But the Government suggested the State Great Khural to change it at 3200 US$ next year. But party groups rejected its proposal. After long meeting and discussing, party groups predicted copper price at 3400 US$ next year. Therefore, MP Khurelbaatar, head of the standing committee on budget, informed that copper price is set at 3400 US$ and windfall tax imposition on gold starts from 850 US$.

Therefore, state budget income will increase by 3.2 billion MNT and fee on mineral resource by 5 billion MNT. MPs of the standing committee on budget supported it. Also MP Ch.Khurelbaatar informed that thanks to the shrinking of current expenditure and investment, another 180 billion MNT will be relieved from the budget burden.

The second round discussion on the state budget was completed and presented to the State Great Khural. But the Government Action Plan of 2008-2012 was widely discussed also. It was adopted not quite soundly even it was nicknamed as a “dream action plan”.
Also several questioning were made on the second round discussion on budget. For example, MP S.Oyun commented that “…income from windfall tax was used completely, but it must be reserved in the future…”

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