Government should reduce budget expenses to avoid inflation

Feb 2 • Economy, News • 582 Views • No Comments on Government should reduce budget expenses to avoid inflation

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Working group headed by Barnettar of the International Monetary Fund worked in Mongolia between January 20 and February 1, 2010.

Besides, the group members talked with representatives of state organizations, private sector, scholars and researchers on issue of macroeconomics policy and situation post Stand By program, which had successfully implemented in Mongolia in 2010.

According to survey, economy of Mongolia is in intensive recover and economic growth will reach more than 10% in 2011 relating to mineral resources export, private sectors’ intensive activity and budget expansion. But inflation could reach 20% in the end of 2011 and it warns that economy of Mongolia would harm due to budget large expenses in 2011. Budget expenses have equaled 2/3 of non mining sectors production and production could not supply domestic demand. Thus, working group has concluded to reduce budget expenditure by a large quantity along general budget determination of 2011.

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