Parliament has begun discussing the revised
budget for 2010 submitted by the Government. Increased global copper prices
have earned more for the State while the decision to raise public servants’
salaries by 30 percent will mean more expenses. The revised income is MNT2.79
trillion, MNT364.2 billion more than in the present budget, while the
expenditure figure has been increased by MNT465.9 billion to MNT3.2
trillion.  The deficit goes up by MNT101.7
billion to reach MNT460.3 billion which equals 6.4 percent of the GDP.

MNT78.2 billion will be
needed to pay the increased salaries and pensions. Paying more per child to schools
will cost MNT7.4 billion, while doubling the amount of allowance to women who bore
many children will cost another MNT8.5 billion. The child allowance and the newlyweds’
allowance will require MNT1.4 billion.

MNT2.4 billion, quite a substantial amount,
has been kept for foreign visits by the President, the Parliament Speaker and the
Prime Minister. MNT3.8 billion will be spent on the Mongolian Livestock program,
MNT5 billion on paying compensation, and MNT3.1 billion on
medical organizations.

Many
lawmakers expressed concern that spreading the welfare allowance net so wide
will actually discourage people’s productivity. Replying to criticism of frequent
revisions, Finance Minister S.Bayartsogt said long term estimates are difficult
to make when the price of the country’s main export was so volatile. When the
2010 budget was formulated last winter, it estimated the average copper price
to be USD4,800 per ton. By the time it was discussed in Parliament this had reached
USD5,800. In the first quarter of 2010, this reached USD8,000. The current
budget revision has been made on the expectation that this will be USD7,500. However,
right now the price has fallen to USD6,800. Once Parliament passes the fiscal
stability law, there will be no further need of any revised budget, he said.