BUDGET DRAFT BILL IS ‘RELATIVELY’ REALISTIC

Economics Professor at the National University of Mongolia and member of the Monetary Policy Commission of Mongol Bank Dr. Ch.Khashchuluun:

The 2019 budget is very significant. This is due to a number of factors. First off, it is the last year of constructive development before the 2020 parliamentary elections.

In addition, it is the year in which we are supposed to see concrete results from the IMF program.

Third, it is a year to implement large-scale projects. Spurring constructive development and addressing key economic and social issues is largely dependent on the work of Cabinet. Looking at past experiences, governments have banked on implementing large-scale projects and receiving large revenue from them. Projects don’t automatically implement themselves. A concerted effort is required in order to see these projects through. There is a tendency to talk and talk about a project for a decade and then give it up in the end. There are many pressing issues in our country such as power station issues and roads and transportation infrastructure degradation. It is important for the relevant ministries and agencies to work quickly and efficiently in seeing projects through.

Excluding the oil refinery being financed with a one billion USD credit line from India, most projects are being financed with public-private cooperation and with foreign investment. But more focus needs to be paid to the fact that the public sector has trouble getting along with the private sector. It is a good thing that the economy is projected to grow by more than six percent. I believe that the 2019 state budget is relatively realistic. The increase in pensions, child money, and salaries is a focal point of the budget.