Prime
Minister S.Batbold told Parliament on Friday that following the 30% raise in
minimum wages, the Government would consider paying salary and pension at increased
rates, but only after making a careful study of the whole issue. He was taking
part in a debate on the state policy on employment. Earlier, he reported the
country’s population has reached 2.8 million, 63.3% of whom live in
Ulaanbaatar. A major part of the population is young and will be in the working
age group until 2025, making it imperative for the Government to generate jobs.

To this end, in the last two years the Government has given out loans worth
MNT60 billion to SME enterprises. It will also use the increased revenue from
mineral resources to improve health and education services.

Most of
the questions asked by MPs after the Prime Minister’s statement were about increasing
salary and pension, and about specifics of the use to which the mineral
resources income will be put. Many wondered if the Government can do much if it
continues to spend a substantial share of its income on paying individual cash
allowances. Batbold reminded them that all political parties have agreed not to
promise any further cash allowance.