Posts tagged ‘state budget’

Mongolia’s 2010 State Budget and Talks of Revision Amid Inflation Concerns

By , 23 May, 2010, No Comment

Sensitive financial issues were discussed at a “secret” meeting on Monday attended by members of the Standing Committee on the Economy, and representatives of the International Monetary Fund, the MongolBank, and the National Statistics Office. They talked mainly about the budget deficit and the threat of inflation.

The Finance Ministry has proposed revisions to the 2010 budget following the increase in the price of copper and gold. If this has meant MNT 364.2 billion in extra revenue, the decision to increase the salary of civil servants by 30 percent, and reinstatement of the child allowance will lead to more expenses. Some new public projects have also been proposed. Taken together, these will take the budget deficit beyond the proposed 5% of GDP as stipulated by the IMF.

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National Debt Equals State Budget

By , 16 April, 2010, 1 Comment

Finance Minister S.Bayartsogt has said that the total foreign debt of Mongolia has reached MNT2.8 trillion, equal to the whole annual state budget. Of this 31.7 percent is in USD, 26.5 percent in Japanese yen, 28.1 percent in euro and 13.7 percent in other currencies. He was speaking at a joint meeting of the Standing Committees on the Economy, on Security and Foreign Policy, and on the Budget which discussed a loan offer from Monaco, and a draft cooperation agreement with the Asian Development Bank for additional financing on a project to develop regional roads.

Both drafts were approved and would now go to Parliament, but several MPs expressed their unhappiness with aspects in both. Some felt that Monaco, with which diplomatic relations were established only two years ago, is offering assistance worth no more than MNT30 million only to help it join the European Union. The ADB loan carries a low interest but has preconditions which make it less acceptable than high interest loans. Mr. Bayartsogt stated that Mongolia will no longer take loans with such preconditions.

Source: Undesnii Shuudan; highlighted in the BCM Newswire by Business Council of Mongolia