Future Heritage money will not be spent before 2030

Finance Minister Ch.Khurelbaatar said that the money that is being and will be put into the Future Heritage Fund will not be spent until 2030, but the assets will be used in a way that will maximize returns.

In the 2019 budget draft bill, 68 billion MNT will be placed in the Future Heritage Fund, while 322 billion MNT will be allocated as revenue into the Fiscal Stability Fund.

By paying off current debt obligations as part of the Human Development Fund, Cabinet plans to increase the capital in the Future Heritage Fund to 550 billion MNT. Around 70 percent or the majority of the revenue into the Future Heritage Fund is from mining royalty taxes, while 30 percent is comprised of distributed dividends from state-owned mining companies.

“While the capital in the Future Heritage Fund will not be spent before 2030, the assets will be used to maximize returns,” said Finance Minister Ch.Khurelbaatar.

In 2019, 5.6 billion MNT from copper revenues and 316.4 billion MNT from coal revenues, equaling a total of 322 billion MNT will be put into the Fiscal Stability Fund. The law regarding the fund says that assets in the fund will be mobilized if a major exporting commodity of Mongolia’s plummets in price or certain unforeseen circumstances hinder the fiscal ability of the government.

According to the National Statistics Office, revenue into the Fiscal Stability Fund as of July 2018 is 158 billion MNT, equal to the same period in 2017.