SPEAKER RECEIVES HEAD OF IMF WORKING GROUP
Ulaanbaatar, Mongolia /MONTSAME/ Parliament Speaker, D.Demberel received the head of International Monetary fund's /IMF/ working group, Steven Barnett on November 9. A future of Mongolia may be bright and people' life might be improved through economic circulation of the mineral wealth, but this year's budget retreated from achievement of the previous year and has huge expense and is profligate, Mr. Barnett said.
In times when inflation is increasing, an overheated budget might give a negative affect, besides, the world economy is not stable and the Europe is facing a debt crisis, which is not favourable for Mongolia either, he said.
In this budget, he went on, macro economic growth has been estimated too high, and this does not match with the state fiscal policy to hold inflation at one-digit figure and may cause to augment the budget expense. In 2013, when the law on budget stability will come into force, the government will have to decrease its 2014 expense, so the 2012 state budget expense must be held within a level of mid-term budget programme, he said.
The Speaker said that the state budget for 2012 will not undergo any other clarification, the government's current expense will not increase that of 2011. The investments proposed by the cabinet will be discussed as they are, bur some works will be postponed. "We will analyse how income resources are calculated and whether prices of products are taken higher than those of the world market. Additional income will go to the stability fund," he said. The Speaker added that parliament will not reject the government's proposal on salaries and pensions increase. "And we will shrink the budget expense after having considered all details," the Speaker said.
B.Oyundelger
In times when inflation is increasing, an overheated budget might give a negative affect, besides, the world economy is not stable and the Europe is facing a debt crisis, which is not favourable for Mongolia either, he said.
In this budget, he went on, macro economic growth has been estimated too high, and this does not match with the state fiscal policy to hold inflation at one-digit figure and may cause to augment the budget expense. In 2013, when the law on budget stability will come into force, the government will have to decrease its 2014 expense, so the 2012 state budget expense must be held within a level of mid-term budget programme, he said.
The Speaker said that the state budget for 2012 will not undergo any other clarification, the government's current expense will not increase that of 2011. The investments proposed by the cabinet will be discussed as they are, bur some works will be postponed. "We will analyse how income resources are calculated and whether prices of products are taken higher than those of the world market. Additional income will go to the stability fund," he said. The Speaker added that parliament will not reject the government's proposal on salaries and pensions increase. "And we will shrink the budget expense after having considered all details," the Speaker said.
B.Oyundelger
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