Minister of Finance S. Bayartsogt has said the draft
budget for 2011 may not have a smooth passage in Parliament as it has been
proposed in compliance with the new Fiscal Stability Law and may not meet
traditional expectations. However, it also reflects the fact that Mongolia is
coming out of the crisis and that its economy is rapidly developing. If all
goes as envisaged, the budget will henceforth be responsible for providing
funds for public service, while finance for economic development will come from
the Development Bank.

The coalition government is committed to meeting the election pledges of
political parties, as it begins collecting revenue from strategic deposits. The
technical basis for this is almost ready to be put in place. This year’s draft
budget has MNT780 billion for wages and pensions, and MNT805 billion to be
spent from the Human Development Fund. The amount distributed among people will
rise by MNT500 billion this year. Every Mongolian will receive MNT21,000 per
month in 2011. Besides MNT82.5 billion will be spent on allocating MNT500,000
towards the tuition fee of every post-school student, MNT10.9 billion to health
insurance, and MNT9.3 billion to those without health insurance coverage now.