3,381.65
At a press conference
held by the Standing Committee on the Budget yesterday, its head, Ts.Davaasuren,
and two members, D.Gankhuyag and D.Dondog, explained that both the income and
expenses in the draft were increased during discussions preceding its approval.
Income rose from MNT3.284 trillion to MNT3.304 trillion or 42.2% of the GDP and
expenses from MNT3.954 trillion to MNT4.084 trillion or 52.1% of the GDP. The
deficit accordingly went up from MNT670.7 billion to MNT779.5 billion or 9.9%
of the GDP, 1.3% more than in the submitted draft.
Capital expenses reached MNT737.9 billion after the second reading of the draft,
MNT95.5 billion more than in the draft. However, the Human Development Fund income
in 2011 was kept at MNT301.2 billion, MNT28.4 billion less than in the draft while
expenses from the Fund reached MNT805.2 billion.
The MPs then answered questions.
Did you consider warnings from the
Mongol Bank and international organizations that so much deficit would push up
inflation?
Ts.Davaasuren: The international organizations are concerned that a deficit
budget might lead a country to raise taxes. But this will not happen here as the
budget is expanding along with development. In other words the budget deficit
follows construction.
What about the law on Fiscal Stability?
MNT183 billion is to go into the Stability Fund and would cover 1/3 of the
deficit. We cannot postpone national construction. The deficit that looks so
huge will be plugged with advance payment from mining contracts. Unless there
is a crisis, these contracts are certain to be made.
D.Gankhuyag: The increase in expenses has been kept within a definite limit. It
would have been more if HDF expenses had been included. Even with some risks, this
budget is historic. The state, the people and businessmen should work together
to strengthen the economic structure. Money from the allowances and social
insurance will be spent on infrastructure development and building apartments.
held by the Standing Committee on the Budget yesterday, its head, Ts.Davaasuren,
and two members, D.Gankhuyag and D.Dondog, explained that both the income and
expenses in the draft were increased during discussions preceding its approval.
Income rose from MNT3.284 trillion to MNT3.304 trillion or 42.2% of the GDP and
expenses from MNT3.954 trillion to MNT4.084 trillion or 52.1% of the GDP. The
deficit accordingly went up from MNT670.7 billion to MNT779.5 billion or 9.9%
of the GDP, 1.3% more than in the submitted draft.
Capital expenses reached MNT737.9 billion after the second reading of the draft,
MNT95.5 billion more than in the draft. However, the Human Development Fund income
in 2011 was kept at MNT301.2 billion, MNT28.4 billion less than in the draft while
expenses from the Fund reached MNT805.2 billion.
The MPs then answered questions.
Did you consider warnings from the
Mongol Bank and international organizations that so much deficit would push up
inflation?
Ts.Davaasuren: The international organizations are concerned that a deficitbudget might lead a country to raise taxes. But this will not happen here as the
budget is expanding along with development. In other words the budget deficit
follows construction.
What about the law on Fiscal Stability?
MNT183 billion is to go into the Stability Fund and would cover 1/3 of the
deficit. We cannot postpone national construction. The deficit that looks so
huge will be plugged with advance payment from mining contracts. Unless there
is a crisis, these contracts are certain to be made.
D.Gankhuyag: The increase in expenses has been kept within a definite limit. It
would have been more if HDF expenses had been included. Even with some risks, this
budget is historic. The state, the people and businessmen should work together
to strengthen the economic structure. Money from the allowances and social
insurance will be spent on infrastructure development and building apartments.
