President
Ts.Elbegdorj has initiated a law on the budget to regulate the negative impacts
on fluctuations in commodity prices. In recent years this has led to lower
state revenues and this in turn has resulted in increasing budget deficits,
rise in inflation and imports, and decrease in GDP. The draft wants future
budgets to be prepared after a thorough survey of the movement of commodity
prices and of the likely inflow of revenue from exploitation of mineral
deposits.

The
President also favors combining the Budget Law and the Law on Budget Management
and Financing.