Finance Minister S.Bayartsogt submitted broad outlines of the budget for 2011 and draft assumptions for the budget for the two years after that to Parliament Speaker D.Demberel on Saturday. The outlines are based on the National Policy for Development, the Directives for Economic and Social Development of 2010-2015 and the Government’s action plan for 2008-2012.

The mid-term budget assumption estimates budget income for 2011 will be 46.9 percent of the GDP, for 2012, 42.8 percent, and for 2013, 34 percent, after taking into account the Government’s development policies and programs, and international developments. The average price for copper in 2011-2012 was taken to be USD 6,800-7,000 per ton, while the gold price was estimated at USD1,100-1,200 per ounce.

The Government intends to adopt an amended Mineral Law by 2011. This will levy taxes on increased prices in the international market, with no relation to investors’ profits.

It was indicated that the money from Human Development Fund will be distributed fully in 2011-2012. The budget expense needs to be cut by MNT338 billion to keep the deficit at roughly about four percent of the GDP.