PREMIER ABOUT DRAFT BUDGET FOR 2012

Ulaanbaatar, Mongolia, /MONTSAME/ Decisions on draft budget for the next year and other matters were made at irregular cabinet meeting last Friday. S.Batbold PM submitted to the Speaker the draft budget for 2012 and draft budgets of Social Insurance Fund and Human Development Fund (HDF) for 2012. According to the draft budget, balanced revenue of the master budget for 2012 will have MNT 6.4 trillion, equivalent to 35.4 per cent of the Gross Domestic Product (GDP); the total expenditure--MNT 7.1 trillion, or 39.5 per cent of the GDP; the total deficit--MNT 740.9 billion, or 4.1 per cent of the GDP. The PM said the budget for 2012 will provide people with work and income through reforming economic structure and ensuring a high economic growth for a long period. In other words, it aims to support people's health, education, business and to create jobs, increase family incomes, and to reduce poverty, he explained. 2012 is the last year for the Mongolian People's Party and the Democratic Party to realize election programs and a collaboration contract which was established between them soon after the parliamentary election in 2008. The cabinet put forward a purpose to give benefits of natural resources to everyone by creating a sustainable resource of budgetary income, ensuring equal distribution of income, making proper tax and other policy regulations. The cabinet also aims to implement an economic and developmental policy based on human development, to expand the basic infrastructure such as railways, autoroads and electric power stations by supporting great construction, and to create all possible financial resources for implementing developmental goals at the minimum cost. The cabinet sees the real economic growth as 25.6 per cent, and expects the GDP would reach MNT 18 trillion--the GDP per capita at MNT 6.3 million. As of the structure of the economics, the service sector will account for 45.6 per cent, and the industrial sector--43.4 per cent. It has been calculated that the balanced revenue of master budget for 2012 will be MNT 6.4 trillion, or 35.4 per cent of the GDP, of which MNT 2 trillion or 31 per cent--from the mining sector, and MNT 4.4 trillion or 69 per cent--from other spheres. Moreover, MNT 4.2 trillion would be spent for current expenses. It is planned to invest MNT 1.5 trillion, which is 2.4 times increase against this year. The investments will be exploited for construction (87.1 per cent), repair works (3.7 per cent), equipment and facilities purchase (9.2 per cent). The investment policy focuses on supporting independent activities of localities, tackling the infrastructure and urban planning of UB city and on reducing air pollution. For instance, an investment of MNT 71.2 billion will be made to the biggest measures such as reducing air pollution.

B.Khuder