Presenting
the draft revised budget to the Parliament Speaker on Thursday, April 29, 2020 Minister of
Finance S.Bayartsogt said revenues are expected to be MNT 2.7 trillion, rising MNT364.2
billion over what was approved earlier. Expenses have also been raised by MNT465.9
billion to reach MNT 3.2 trillion. The resulting deficit will be MNT460.3
billion or 6.4 percent of GDP. The revised estimates are based on average
copper price at USD 7.500 per instead of the earlier USD5,800, raising income
by MNT209.3 billion. Gold price average is now estimated at USD 1,100 per ounce
in place of USD900.

 Following his
meeting with the Speaker, the Minister answered some questions from media.

How will the international donor organizations
react?

Our agreement
with the International Monetary Fund says the deficit must be kept under 5
percent of GDP. This will be so as the IMF has agreed to keep the MNT150
billion given to the Zoos Bank and the State Bank out of budget expenses.

 How much will Oyutolgoi contribute to
the revised budget?

We expect income
from the Oyutolgoi project to be MNT 50.3 billion more than originally
estimated.

What about expenses?

With
increased revenue, we have the leeway to spend more. Salaries and pensions,
unchanged since 2008, will go up 30 percent from October 1. MNT 78.2 billion
will be needed for this in the present year. We shall also spend MNT 3.8
billion on the livestock program, MNT5 billion on implementing court orders,
MNT3.1 billion in the health sector, and MNT1.4 billion to pay Child Money and
other family allowances.

 When will Parliament begin discussion
of budget expenditure report of 2009?

The report
must be submitted to Parliament before May 1 and will be discussed soon
thereafter, along with the Government’s financial report.