Budget for 2011 reached 3.9 trillion MNT

Nov 29 • Government, News • 512 Views • No Comments on Budget for 2011 reached 3.9 trillion MNT

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D.Zorigt, MP and Deputy Chief of the Budget Expenses Control’s Sub Council discussed about the budget for 2011
Q: What is the final combined budget like?

D.Zorigt: It became bigger and reached MNT3.9 trillion. MNT1 trillion or 32% of this would be spent on social welfare and allowances. I am upset because this is a considerable sum and could have been used more productively to help small and medium enterprises. However, both parties agreed that the promised monetary allowance can be taken in cash or as capital for a cooperative business plan and some other purposes. Laws on the budget, election and political parties should be amended soon. State income will increase as mining expands and the new laws should take this into account.

What is the final deficit figure?

D.Zorigt: At MNT600 billion it reached 9.9% of the GDP.

Q: How can this be met?

D.Zorigt: There will be the advance payment from Tavantolgoi, the income from increased royalties, and the mineral resources added tax.

Q: What has been the reaction from donor organizations like the World Bank and the International Monetary Fund?

D.Zorigt:They have been critical that this should be the case even after we passed the law on budget stability.

Q: Will citizens have to pay more taxes?

D.Zorigt:We took note of their complaints about a rise in the car tax and the car excise tax. Property tax will go up from 0.6% to 1% in 2013. Registration fees will be higher on many documents. However, citizens would not be burdened by taxes as none of the increases is high.

Q: How does the budget reflect the policy on basic development which Parliament passed in the spring session?

D.Zorigt:The money to implement the policy is still not there as MNT1 trillion would be spent on social welfare measures.

Q: How much will be spent elsewhere?

D.Zorigt: Investment in infrastructure and energy will be MNT500 billion, the same as last year. Some new hospitals and schools would be built and some others extended but there is not sufficient capital for this. We need to accommodate 20,000 new students but we have money to build only one school for 2,500.

Q: What about the inflationary impact of all this?

D.Zorigt: We hope for single-digit inflation and expect the monetary policy we passed will guarantee this.

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