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Economy / Featured News / Mongolia News / Politics / December 15, 2014

New Minister of Finance submits draft amendments to 2015 state budget

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On December 11, MP and Minister of Finance J.Erdenbat submitted draft amendments to the law on the 2015 state budget, the law on the 2015 budget for the social insurance fund, and the law on 2015 human development fund to Deputy Chairman of Parliament R.Gonchigdorj.

The draft was revised based on provision 34.1.4 of the law on budget, which states “a draft amendment should be processed when regulating the state budget”.

J.Erdenebat introduced that the expenditure of the social insurance fund increased by 21 billion MNT, but the operating costs were reduced by 0.1 billion MNT.

The following amendments are reflected in the draft regarding the human development fund: the Prime Minister of Mongolia will serve as budget portfolio manager of the dividend accumulation funds, and the debt service payments of the human development fund will be increased by seven million MNT.

The draft also includes increasing the approval of the payment of 2012′s released bonds by 21 million MNT, increasing the human development fund’s prepayment by 81 million MNT, and releasing bonds of 320 million MNT. spoke with Chairman of the Standing Committee on Budget Ts.Davaasuren regarding the draft amendments to the 2015 state budget.

The 2015 state budget was criticized for being inefficient. How is efficiency reflected in the amendments?

The amendments don’t really focus on efficiency. Around 900 positions were cut when approving the 2015 state budget and over 700 million MNT was saved. The changes made made in accordance with the new government’s structure.

 During yesterday’s [December 11] cabinet meeting there was talk of 51 billion MNT being saved?

It includes various cuts. I personally don’t agree with some of them. For example, reducing the leather production bonuses by 16 billion MNT is wrong. If we want to solve UB’s population issues and air pollution, then we need to encourage citizens to leave UB and live in the countryside. There aren’t any bonuses in the countryside, so people are heading to the capital.

 The new government’s structure was approved, do you need to amend the state budget within 2014?

Yes, it’s necessary. When approving the 2015 state budget, three ministries were eliminated. The new ministries have to have budgets to begin the upcoming year, so the amendments need to be approved within December 2014.

 The number of ministries has increased. How are financial resources are being estimated?

The amendment includes only a few cuts and additions. The state budget is not finalized yet, so it’s too early to talk about financial resources.


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