Tax revenue decreased by 703 billion MNT

According to the preliminary results in the first half of 2020, the total revenue of the general government budget amounted to 4.4 trillion MNT, 4.1 trillion MNT of which accounted for equilibrated revenue. Total equilibrated revenue was 94.1 percent of general government budget revenue.

Total expenditure and net lending amounted to 6.3 trillion MNT, resulting in a deficit of 2.2 trillion MNT in the equilibrated balance. However, in June 2020, total revenue and grants of general government budget reached 794.7 billion MNT, increased by 97.7 billion MNT or 14 percent, and total expenditure and net lending amounted to 1.4 trillion MNT, down by 226 billion MNT or 14.1 percent compared to the previous month. Some 85.8 percent of the state budget revenue came from tax revenue, 8.2 percent from nontax revenue, 5.7 percent from the future heritage fund, and 0.3 percent from the stabilization fund.

In the first half of 2020, tax revenue reached 3.7 trillion MNT, down by 703.3 billion MNT or 15.8 percent compared to the same period of the previous year. This decrease was mainly due to decreases of 222.9 billion MNT or 19.5 percent in income taxes revenue, 148.2 billion MNT or 33.5 percent in other taxes revenue, 138.4 billion MNT or 15 percent in social security revenue, 96.9 billion MNT or 9.2 percent in value added taxes, 61.9 billion MNT or 14.5 percent in excise taxes revenue and 27.1 billion MNT or 7.5 percent in foreign activity revenues.

Social security contributions revenue increased by 0.2 points, value added tax revenue by 1.9 points, foreign activity revenues by 0.7 points and excise taxes revenue by 0.2 points, while other tax revenue decreased by 1.9 points, income taxes revenue decreased by 1.1 point compared to the same period of the previous year in the first half of 2020.

In the first half of 2020, state budget expenditure and net lending reached 6.3 trillion MNT, increased by 1.6 trillion MNT or 33.8 percent compared to the same period of the previous year. This increase was primarily affected by an increase of 1.1 trillion MNT or 27.5 percent in current expenditure and 592.8 billion MNT or 93.2 percent in capital expenditure.