Standing committee requests working group to fix budget
D.Khayankhyarvaa, the chairman of the Standing Committee on Budget, tells the newspaper Udriin Shuudan that politics has too often taken precedence over economics in the debate over the proposed 2012 state budget.
He said MPs have criticized the proposed budget during discussions in standing committees. Proposed expenditures are nearly double the 2011 budget, while income from the mining sector is vulnerable to fluctuation. He also noted that economists and international organizations are warning that Mongolia’s economy could overheat, leading to increased inflation.
That is why the Standing Committee on Budget has requested the establishment of a single working group to consider budget-related draft laws. D.Khayankhyarvaa said, that way there will be a single body to hold the line on the budget, reduce government building expenses, and take into account the drastic fall of global copper and coal prices.
Also, he said international organizations have warned that Mongolia’s GDP growth must not be too dependent on growth in the mining sector. He pointed out that the IMF warns countries with mineral resources to develop systematically and avoid a natural resources “curse.”
He said MPs have criticized the proposed budget during discussions in standing committees. Proposed expenditures are nearly double the 2011 budget, while income from the mining sector is vulnerable to fluctuation. He also noted that economists and international organizations are warning that Mongolia’s economy could overheat, leading to increased inflation.
That is why the Standing Committee on Budget has requested the establishment of a single working group to consider budget-related draft laws. D.Khayankhyarvaa said, that way there will be a single body to hold the line on the budget, reduce government building expenses, and take into account the drastic fall of global copper and coal prices.
Also, he said international organizations have warned that Mongolia’s GDP growth must not be too dependent on growth in the mining sector. He pointed out that the IMF warns countries with mineral resources to develop systematically and avoid a natural resources “curse.”
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