Deputy Minister for Finance T.Ochirkhuu answers questions on
the state budget.

Is it possible to
agree to the IMF demand to keep the budget deficit within five percent of GDP?

We are still working on it. There is no other option but to accept
the IMF requirement because we cannot do without loans from IMF. There will be
no money in the budget if the loans do not come.

The IMF has said that
expenses can be raised by only MNT150 billion. Can you do this?

IMF said it was possible to raise the budget expense by MNT
150 billion. But we planned to spend MNT 600 billion more which means we need
to cut MNT 450 billion. It means less investment and less constant expense. Job
cuts may also be considered. The two party groups and Standing Committees are
discussing it. It is too early to say anything now.

It seems there will
be an extensive cut in the number of government employees.

There will be some structural change but not anything big.
Abolishing one agency saves only about MNT 400-500 million. Abolition of 10 agencies
will mean MNT 4 billion. But we are talking about MNT 600 billion. Many
countries do not cut jobs during a crisis, but reduce salaries. We could also
do this but Parliament will decide.

Does the IMF think
that Mongolia overestimated income from mining?

The IMF does say the estimated income is unrealistic. It also
wants all extra income to be put into a special fund. They are offering the examples
of Greece, Spain, Portugal and Hungary and cautioning Mongolia.

Is it possible to
give the Child Money from next month?

Parliament will make the decision but it will not be easy to
give the money.