DP: Parliament needs to reform state budget

The Democratic Party (DP) caucus in Parliament reported on issues discussed at its regular meeting on Monday.

Lawmaker S.Odontuya said that the DP caucus agrees on saving state budget money, before noting that the caucus has repeatedly raised the issue of cutting down unnecessary expenses and investments.

“One concern is that even with the passage of the bill on eliminating the shortage of supplies and its negative impact on the economy, there will be little chance of recovery from the economic shock. As an economist, I think we need to reform the state budget. Rising commodity prices must be monitored. A working group was set up by the DP caucus to monitor this. Of course, it is right to amend the budget,” she continued.

The legislator added, “If Mongol Bank hides information on to whom for how long loans are issued under the Price Stabilization Policy, the same problem as Development Bank’s will occur again. Policy mistakes should not be repeated for the sake of the economy. In fact, it is possible to develop a specific program, not a special law. As the bill on eliminating the shortage of supplies caused by the international crisis and its negative impact on the economy is being drafted within a short period of time, it has many shortcomings. We oppose this.”

Inefficient government spending is high. The caucus said that Mongolia is shifting to become a digital nation but people need to get three copies of official letters to meet a member of Parliament at the State Palace. They view this as a wasteful use of paper. The main goal of DP is to reduce the burden on taxpayers, S.Odontuya highlighted.

Parliamentarian B.Purevdorj suggested that long-term policies are needed to combat inflation. He views that the exchange rate gap has widened and consumer prices have risen due to the government’s welfare system.

“Russia raised its interest rates during the economic crisis and took immediate action. Therefore, Mongolia needs to raise the policy rate to 13 percent and attract more money. This will make up for the economic losses. The main factor influencing the economy is transportation and logistics issues. Mining products, which are the main source of foreign currency, must be exported. In this way, we can overcome the currency shortage,” the lawmaker pointed out.

Chairman of DP caucus D.Ganbat underlined, “It needs to be clarified who will oversee the budget execution and who will be responsible for it. We have not always opposed what the government is doing. If it makes viable decisions and proposals, we will support it. In general, a longterm policy is needed.”