Finance Minister S.Bayartsogt submitted to Parliament Speaker D.Demberel proposals to revise the 2011 budget, the social insurance budget, and the Human Development Fund budget.
As originally passed, the 2011 budget projected revenue of MNT 3,304,6 billion (42.2 percent of GDP) and expenses of MNT 4,084,1 billion (52.1 percent of GDP), with a deficit of MNT 779,3 billion (9.9 percent of GDP).
But Bayartsogt noted that industrial production increased by MNT 69.3 billion (6.8 percent of GDP) at the end of July 2011, significantly increasing government revenue.
Therefore, the revenue projection has been increased by MNT 615.3 billion. Expenditures on projects and programs will be increased by MNT282.1 billion. Investments will be increased by MNT 914.8 billion. The revised deficit is 9.8 percent of GDP. The Minister said that the increased investment will spur economic growth.
D.Demberel asked about the negative impacts of revising the budget. S.Bayartsogt replied that the monetary supply increased by 67.2 percent at the end of July 2011 (compared to the same period the previous year). He said the Government must work to keep petroleum and meat prices in check, but he said the Ministry does not believe inflation will exceed ten percent.