Nation’s budget deficit close to 2 trillion MNT

NRSO representatives reporting on socio-economic data for July

The National Registration and Statistical Office (NRSO) presented socio-economic data for the first seven months of 2016, and announced that the nation’s budget deficit has reached 1.97 trillion MNT, up by 1.3 trillion MNT in comparison to 2015.

The NRSO believes that the budget deficit growth is linked to state budget expenditure and loan repayment exceeding the nation’s income. In May, the NRSO reported that the nation’s balanced budget income stood at 2.85 trillion MNT, while loan repayment and expenditure was 2.96 trillion MNT, resulting in an 877 billion MNT deficit. However, two months later, the NRSO reported that the state’s budget expenditure and loan repayments surged to 5.14 trillion MNT.

The NRSO also reported that the average monthly income of Mongolians was 874,400 MNT, a figure down by 101,300 MNT (10.4 percent) over the same period in 2015.

As of the end of July, money supply equaled 11.3 trillion MNT, up by 120.1 billion MNT compared to the previous month. The NRSO believes that the money supply increase was influenced by 289.8 billion MNT in the growth of savings at commercial banks.