Distribution of child money suspended until budget amendment

The monthly child allowance of 20,000 MNT will not be distributed until the expenditure is included in the state budget, stated the Ministry of Labor and Social Protection.

As part of the extended fund facility, the government took measures to strengthen the social safety net and target expenditures toward the most vulnerable. As a result, the government fine-tuned the Child Money Program with a commitment to target the program to less privileged families from 2018 and use the savings to increase food stamps for the poor.

This effectively meant that the child money ceased to be distributed until Cabinet made the decision to resume the child money distribution right before the 2017 presidential election. Cabinet reportedly spent around 161 billion MNT to distribute child money to 403,445 children, compensating for the allowances that were suspended during January to July 2017.

Cabinet explained that the money had come from increased revenue from coal exports and was sourced from a surplus in the state budget. Due to positive signs of revival in the economy, the child money would be distributed explained Cabinet. Yet, the child money for the month of August has not been transferred.

Government officials offered the explanation that the child money must be included in the state budget before it can be continued. This has caused many analysts and pundits to criticize Cabinet’s move to distribute child money against the advice of the IMF as an election ploy.

The issue will go through the Ministry of Finance, Cabinet, and Parliament before it can be added to the state budget as an amendment.

In response to the move, the Democratic Party caucus in Parliament stated, “Even though the capital was there to distribute the money, it is not possible to further continue the distribution of child money without amending the state budget.”