Waves of migration from the
provinces have meant that almost half of the Mongolian population now lives in
its capital city, straining its infrastructure and increasing various forms of
environmental pollution. Parliament therefore had no hesitation when it
recently approved the Government’s Smokeless Ulaanbaatar program.

However this program faces
problems of funds. The Standing Committee on the Budget has refused to make
money available from the Human Development Fund, as proposed by L.Gansukh,
Minister of Nature, Environment and Tourism. MPs felt the avowed goals of the
fund are inconsistent with those of the program. The Minister is pinning his
hopes on getting a go-ahead from the Standing Committee on the Economy.

The program is a
comprehensive one, integrating areas such as urban planning, housing subsidies,
increasing use of environment-friendly fuel, tax incentives, and amendments to
13 existing laws and adoption of seven new ones. It plans to spend MNT8,855
million in 2010-2012, and another MNT9,362 million in 2013-2016. The New Soum
Centers project, aimed at curbing migration from rural areas to Ulaanbaatar, will need
40.9 percent of this total. The Minister hopes to get 6.8 percent of the budget
from the state, 92.7 percent from the anticipated extra revenue from mining,
and 0.5 percent from loans and financial assistances.