Economists Not At Ease with Giving Away 1.5 Million to All

By , 17 April, 2010, 1 Comment

Several economists have expressed their reservation about the Government’s announcement that every Mongolian citizen will receive MNT1.5 million by 2012.

Mr. Ts. Demberel appreciated that both parties were in a bind, having made this the basis of their election campaign. However, it still will be unwise to distribute so much cash. “Most of this will end up in the hands of Chinese manufacturers, and a much better decision would have been to spend it on infrastructure that benefits all,” he said.

Mr. Ch. Khashchuluun, Chairman of the National Development and Innovation Committee, said it is not yet clear how the money will be actually distributed. “It is important to guard against inflation as that would nullify any benefit to people,” he said.

Mr. D. Batjargal, Director of the University of Finance and Economy, wondered where the money will come from and hoped the Government would not have to take foreign loans to fulfill its pledge.

Mr. D. Jargalsaikhan said the total amount needed would be MNT6.25 trillion, “far more than the country’s present annual GDP” and was certain the country “does not have the economic capacity to implement the Government’s decision”.

Honored Economist N. Dashzeveg refused to comment without knowing where the Government hoped or planned to get the money from.

Source: Zuunii Medee; highlighted in the BCM Newswire by Business Council of Mongolia

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