On Wednesday, the Standing Committee on Economics approved revising the 2012 budget and sent the matter back to Parliament for further discussion. The revised budget would almost immediately increase salaries and pensions for state workers.

MPP committee members supported the revision, but DP members warned the increases could endanger the country’s economy.

Finance Minister D.Khayankhyarvaa said budget income so far this year has been estimated at MNT 161.5 billion, including MNT 109.1 in January. He said the revised budget is based on these figures.

If state workers’ salaries and pensions are increased in stages from February 1 and from May 1 as proposed, D.Khayankhyarvaa said, MNT161.5 billion of the total budget will go to state needs, MNT13.9 billion will go to the social insurance fund, and MNT 8.8 will go to local settlements.

D.Khayankhyarvaa added that total budget expenditures will amount MNT 464.1 billion, or three percent of GDP.