First Deputy PM N.Altankhuyag discusses salaries, budget
DP Chairman and First Deputy Prime Minister N.Altankhuyag answered our correspondent’s questions.
Q: The Government has decided to increase the salaries and pensions of state officials by 53 percent in 2012. What is your opinion on the salaries of private sector workers?
A: The Government has decided to increase the salaries of state officials by MNT 80,000 in the first step and by a certain percentage in the second step. This is necessary because of rising prices. Certainly, the private sector should pay attention to salaries, because they affect productivity. If the private sector does not increase salaries, then workers will leave the private sector.
Q: Private sector workers will make much less than state officials in 2012, despite the fact that the private sector produces wealth. What do you say about that?
A: Both state officials and private sector workers should try to increase productivity for the development of the state. Private sector employers should prepare policies so their workers work efficiently and don’t leave the working place.
Q: A 53-percent salary increase could motivate Mongolians to work for the state instead of the private sector. The private sector could be dwarfed by the growth of the state. What do you think about that?
A: The Government has not done research into how salary increases affect the growth of state organizations. I do not think the private sector will be dwarfed because of the raises given state workers. The Government’s policy is that its workers should be able to live on their salaries.
Q: The 2012 budget proposal has billions in allowances. Inflation rises because of the allowances and vulnerable people are affected by inflation. What should be the budget priorities?
A: The Government has decided to fulfill the promises the MPP and the DP made in the 2008 parliamentary election. The budget proposal has some mistakes of economics, and is directed to social care. I can‘t say it is a perfect budget proposal and it could have some negative consequences.
Q: Could the Government fulfill its promises in another form, such as shares?
A: The budget proposal of an election year has been passed [before] with much monetary aid, and inflation increased in the election year. This is not a new situation.
Q: The Government has decided to increase the salaries and pensions of state officials by 53 percent in 2012. What is your opinion on the salaries of private sector workers?
A: The Government has decided to increase the salaries of state officials by MNT 80,000 in the first step and by a certain percentage in the second step. This is necessary because of rising prices. Certainly, the private sector should pay attention to salaries, because they affect productivity. If the private sector does not increase salaries, then workers will leave the private sector.
Q: Private sector workers will make much less than state officials in 2012, despite the fact that the private sector produces wealth. What do you say about that?
A: Both state officials and private sector workers should try to increase productivity for the development of the state. Private sector employers should prepare policies so their workers work efficiently and don’t leave the working place.
Q: A 53-percent salary increase could motivate Mongolians to work for the state instead of the private sector. The private sector could be dwarfed by the growth of the state. What do you think about that?
A: The Government has not done research into how salary increases affect the growth of state organizations. I do not think the private sector will be dwarfed because of the raises given state workers. The Government’s policy is that its workers should be able to live on their salaries.
Q: The 2012 budget proposal has billions in allowances. Inflation rises because of the allowances and vulnerable people are affected by inflation. What should be the budget priorities?
A: The Government has decided to fulfill the promises the MPP and the DP made in the 2008 parliamentary election. The budget proposal has some mistakes of economics, and is directed to social care. I can‘t say it is a perfect budget proposal and it could have some negative consequences.
Q: Could the Government fulfill its promises in another form, such as shares?
A: The budget proposal of an election year has been passed [before] with much monetary aid, and inflation increased in the election year. This is not a new situation.
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