Daily Business News Mongolia

Establishment of “Development Bank” was included in the main principle

The main principle to develop economy and society in year 2009 was discussed by the State Great Khural. The draft of the main principle to develop economy and society of Mongolia in year 2009 was presented by the Minister for Finance S.Bayartsogt. When developing the draft, it was based on the mid term plan and evaluation and conclusion of economy and society of this year. Minister briefly introduced the background of this year’s development in economy and problems. He also continued that Mongolian economy is the highest in Asia with its inflation rate. But the urgent reaction of Government such as Atar III campaign, compensation on price difference, establish state reserve, soft agreement on wheat and grain import, was essential to harness soaring inflation. (more…)

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S.Bayartsogt, the Minister for Finance: If Government withdraws its money from banks, the risk fund will replace.

Budget of two deputy ministers is not wasteful expense
Copper price decreased and globalised crisis. Banking sector is under huge challenge of getting through it. If Government withdraw its money from banks, some small banks might be collapsed and bankrupted.

Q: Copper price is decreasing. So, the election promises are vanishing?
S.Bayartsogt: Due to the copper price fall, we had to amend the budget project of 2009. Also the Mongolia Development Fund, based on the windfall 60% tax, will be decreased and children and new family money will be decreased accordingly. But “Grant of the Motherland” will be distributed after the realization of the major mining projects. Of course, if it will be distributed by cash, then it surely fuel up inflation.  We decided to reconsider all the previously implemented welfare projects. We will take effective and optimal ones and drop out wasteful and ineffective ones. If we can do so, we can provide welfare.  (more…)

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S.Bayartsogt: Expenditure will be reformed in the next four years

The secondary discussion was made on budget expenditure of year 2007, during the session of Standing Committees of Law, Economy, Social Policy, Education, Culture and Science. There were many remarks and and comments on misuse of budget expenditure. For example, The National Public Radio and Television is funded by the Governement, but its expenditure goes through commercial bank and so on.  (more…)

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S.Bayartsogt: Better halt tax waive and exemptions

Q: The Government will revoke tax on oil product and petroleum. What is your position on it?

S.Bayartsogt: When price increase, tax issue is discussed through parliament. The Government has a right to manage. Accordingly, Government of Mongolia held meeting on this issue and decreased tax on petroleum twice and exempted VAT and Customs tax. But petroleum price was still increasing. But now petroleum price is decreasing sharply, so we are reviving tax on petroleum starting from October 15 2008. We will pursue the policy to halt all types of tax and subsidy.
Q: Will petroleum price increase in the future if you revive tax on petrol?
S.Bayartsogt: The First Deputy Prime Minister met with the senior officials of the petroleum importing companies. As for today, if compare the petrol price set by the importing companies and the world market increase, price in Mongolia is higher. Therefore, we proposed them to decrease their price and they received it. Both sides reached the common consent on the possibilities to stabilize the price of petroleum.

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S.Bayartsogt: Salary and pension will be increased without announcement

Mr. S.Bayartsogt made press release and interview to the media, in relation with the proposal of the Budget Modification and Project on development principles of economy and society in year 2009, to the State Great Khural. His primary target is to decrease inflation rate down to 12% from 34% and to decrease consumption price. The development principles stated that economic growth rate will be 14.1%, reach GDP to 7 trillion 95 million MNT and GDP per capita will be 2274 US$ in year 2009. According to the first 8 months performance of the state budget, total income was 1 billion 405.1 million MNT and expenditure was 1 billion 401 million MNT. Tax waive on oil products and wheat, grain was the main reason of decreasing budget income. He answered some questions from journalists: (more…)

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Resume of Bayartsogt Sangajav, Cabinet Member, The Minister for Finance

1967 Born in Sukhbaatar city, Selenge province

Education:
1984 Secondary School No 1, Sukhbaatar city, Selenge province
1984-1989 Moscow State University in the name of Lomonosov
1994-1996 Academy of Foreign Trade, Baden Wurttemberg
2000-2003 School of Law, National University of Mongolia
2001-2002 University of Columbia
Lecturer of Political Science, Economy, Lawyer.

Workshops and seminars:
1995 Food Policy Management, Germany.
2002 Budget expenditure management, IMF
Master of International Economy

Languages: Mongolian, Russian, English, German

Jobs and Positions:
1989-1990 Secretary of the Revolutionary Youth Union, State Central Hospital.
1990-1991 Deputy Chairman. The Mongolian Revolutionary Youth Union.
1990-1992 Representative of the People’s Great Khural of the Republic of Mongolia, Member of State Baga Khural,
1991-1997 President of the Youth Federation of Mongolia
1992-1994 Teacher, Political Education Academy, researcher.
1996-2000 Member of Parliament.
1996-1999 Deputy Chairman of the Mongolian Social Democratic Party.
1998 Cabinet Minister, Minister of Environment
2000-2004 Adviser, “Tovkhon Khan” LLC
2002 Expert, IMF
2004-2008 Member of Parliament
2004-2006 Cabinet Minister, The Head of the Cabinet Secretariat.
2008 Member of Parliament

Appointed as the Cabinet Minister and the Minister for Finance by the session of the State Great Khural, September 19, 2008.

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S.Bayartsogt, Minister of Finance: Of inflation, 70 percent is an administrative cost

Foreign market conditions affected on inflation growth up to 34 percent this year, though budget waste accounts for not less portion of it. The Ministry of Finance formulated a draft on budget clarification and expense cut. The Government discussed the draft and decided to re-discuss it finally on next Wednesday. Budget income of this year went up by MNT 210.3 billion thanks to gold and copper prices in the world market, domestic activities and services, and increase in petroleum export and import. On the other hand, the income might be cut by MNT 204.5 billion due increasing tax refund and decreasing tax on some domestic goods. (more…)

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S.Bayar receives N.Altanhuyag

MPRP leader and Prime Minister of Mongolia S.Bayar received N.Altanhuyag, new Chairman of the Democratic Party  and congratulate for the appointment to a responsible position. Noting it was essential MPRP and DP to cooperate, taking advantages of favorable opportunities in social, economic and political arenas, the Prime Minister highlighted, “It is our priority to solve problems and ensure livelihood of the people even there are problems like inflation and price growth. On the other hand, the two parties must collaborate on launching major mining projects and putting the resources in economic turnover without delay in consistency with fundamental interests of the Mongolian people.

I do believe that you, a newly appointed leader of the Democratic Party, would attach close attention on and contribute to it. There is no way to go forward without completing the works we already started together and solving the problems accumulated. For instance, poverty and unemployment reduction, which is demanded and asked by the public, should be our priority. Our Party is for cooperating with the Democratic Party on mutual understanding and united positions, using every possibility for the country and people of Mongolia.”
As a Chairman of the DP, N.Altanhuyag highlighted two issues worth attaching attention. He pointed out that the Parliament should be formed completely with 76 members in the near future. (more…)

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