Parliament approved a new state monetary policy on Friday and forwarded it to the Standing Committee on Economics.

But some MPs were critical of the policy, saying it shouldn’t be approved until the 2012 state budget is finalized, and that state spending is still too high. They also said some businesses are unable to get loans because Mongol Bank is raising its rates.

Critics also pointed out that the Government still plans to give each citizen a monthly “allowance” of MNT 21,000 until the middle of next year. That fulfills a campaign pledge made in 2008, but critics say the budget should not be politicized in such a way.

Some MPs suggested reducing expenditures in the 2012 budget, and monitoring business loans more closely. They also said Mongol Bank should research ways to curb inflation other than raising rates.