MP D.Bayarsaikhan: Personally, I am against 34%

Nov 21 • Government, Laws, Mining, News, Politics • 503 Views • 1 Comment on MP D.Bayarsaikhan: Personally, I am against 34%

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Q: Do you comments on the discussion of state budget of Mongolia?
A: The second discussion on the state budget of Mongolia is about to end. I think the State Great Khural shall cancel its resolution on “goat” money. Otherwise, we shall cut children and mothers’ money and allow “goat” money. It is time now to make some cuts in the budget expenditure. When cutting it, we don’t need “cosmetic surgery”, but we need decisive moves instead. Parties must give up their populist promises. Number of agencies must be decreased and even the deputy minister’s post is not necessary. Therefore, the State Great Khural shall revise its resolutions such as “goat” money.

Q: But, what do you think about placing money of Mongolia Development Fund at commercial banks?
A: Economists talked about the effects of world financial crisis in Mongolia a lot. It already takes its effect in Mongolia. The state’s support for some commercial banks is correct, but it is wrong to put our hand in the pocket of Mongolia Development Fund. I am against it. Actually, it can be solved through IMF and other financial tools, such as bond and foreign grant aid. The reason why the Mongolian money is important is that foreign aid and bond demand very detailed expenditure and calculation, but for Mongolia, we don’t need that, therefore, some signature can waste lots of money without control. Also when placing this huge amount of money at banks, we should be well aware of risks. If there will not be any result and positive outcome, then who will bear the responsibility, whether the State Great Khural or Government?

Q: The drafting the amendment in the Mineral Law of Mongolia (2006) is underway and the working group issued its conclusion. What is your opinion towards it?
A: We have been talking about it for long. It is time now to realize these deposit into the economic circulation and as for me, we didn’t talk about it when the commodity price was high. But then when it fall to its almost minimum, we are talking about to adopt 34%. Why it cannot be 36 or 40%? Behind 1%, there are so much money and capital and people’s wealth.

Q: MPRP expressed its position towards windfall tax. What is your party group position?
A: The most stable commodity is gold at moment. Windfall tax has its positive effect. It negative side is that the gold production went underground. Gold sales to the Bank of Mongolia dropped dramatically. Therefore, it is good decision to remove windfall tax.

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One Response to MP D.Bayarsaikhan: Personally, I am against 34%

  1. Barry says:

    Here it is June 30,2009.
    Have either the Minerals or the windfall taxes been changed and voted on?
    Not that I have noted. Maybe a call to MP D. Bayarsaikahn should be made. Both of these items are integral to getting an IA signed between IVN / RTP and Mongolian Government.
    Best of luck “B”

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