MONGOLIAN GENERAL GOVERNMENT BUDGET UPDATE

In the first seven months of 2011, total revenue and grants of the General Government Budget (GGB) amounted to MNT 2305.7 billion and total expenditure and net lending amounted to MNT 2180.3 billion representing surplus of MNT 125.4 billion in the GGB overall balance. In the same period of previous year, the overall balance was in deficit of MNT 129.4 billion.

The GGB overall balance surplus was mainly due to the revenue growth pace exceeded the expenditure growth by 20.2 percentage points. Current revenue of the GGB amounted to MNT 2256.3 billion and current expenditure reached MNT 1731.3 billion. Thus, the budget current balance was in surplus of MNT 524.9 billion. Compared to the same period of the previous year, tax revenue increased by MNT 697.3 billion or 53.8 per cent. The increase was mainly due to the increases of MNT 309.7 billion or 71.6 per cent in taxes on goods and services, MNT 221.1 billion or 2.5 times in other taxes, MNT 88.2 billion or 90.8 per cent in taxes on foreign trade, MNT 63.5 billion or 38.0 per cent in social security contribution, MNT 12.7 billion or 2.9 percent in income tax, and MNT 2.1 billion or 31.9 per cent in ownership tax. Compared to the same period of the previous year, non-tax revenue increased by MNT 109.7 billion or 71.6 per cent. The increase was mainly due to the increases of MNT 59.8 billion or 91.3 per cent in revenues from budget entities, MNT 32.4 billion or 6.6 times in revenues from dividends, MNT 6.7 billion or 33.9 per cent in revenues from interest and fines, MNT 6.3 billion or 35.9 per cent in revenues from navigation fee, MNT 2.8 billion or 13.0 per cent in other revenues, MNT 1.6 billion or 7.1 per cent in revenues from oil petroleum. In the first seven months of 2011, total expenditure and net lending of the GGB increased by MNT 566.9 billion or 35.1 per cent to MNT 2180.3 billion against the previous year. This was mainly due to increases of MNT 305.9 billion or 48.9 per cent in subsidies and transfers, MNT 181.8 billion or 30.6 per cent in expenditure of goods and services, MNT 144.4 billion or 67.4 per cent in capital expenditure, although there was decreases of MNT 58.0 billion or 39.1 per cent in lending minus repayments, and MNT 7.2 billion or 24.0 per cent in interest payments. Spending of MNT 358.7 billion on capital expenditure in the first seven months of 2011 was higher by MNT 144.4 billion or 67.4 per cent against the previous year. The increase in capital expenditure was due to the increases of MNT 123.9 billion or 59.4 per cent in capital expenditure of domestic sources, and MNT 20.5 billion or 4.5 times in foreign financed capital expenditure.

Source : Montsame

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