Minister of Finance B.Choijilsuren submitted a final draft of amendments to the 2017 state budget to the Speaker of Parliament M.Enkhbold, drafted for the implementation of an extended fund facility program from the International Monetary Fund.
The authors of the amendments believe they will help in implementing basic guidelines for 2017’s socio-economic development and include measures from a program to overcome economic challenges approved by Parliament last year.
The amendments focus on strengthening the state budget and the nation’s financial environment, permanently reducing budget deficits, and strengthening fiscal discipline.
Minister B.Choijilsuren pointed out that the following measures are outlined in the amendments:
1. increasing excise taxes on alcoholic beverages and imposing a tariff on imported cigarettes
2. increasing excise taxes on gasoline and diesel fuel within legal limits
3. raising excise taxes on vehicle imports, depending on engine capacity
4. dividing personal income taxes into three brackets and increasing personal income tax for people with higher incomes
5. charging a ten percent tax on interest earned from savings accounts
6. raising social insurance fees
The Minister of Finance also noted that the following measures will be taken to reduce the government’s operational expenditures and to cut spending:
1. increase the efficiency of tenders being carried out in the medical sector
2. gradually raise the retirement age every two years
3. promote the Meat and Milk Campaign to develop meat and dairy products, launch the Atriin 3 Campaign to improve agriculture, and support small enterprises to create more jobs
4. provide the state’s monthly welfare allowance of 20,000 MNT for children and other state assistance only to targeted groups
5. repeal existing laws that put pressure on the state budget
Under the amendments, the state will aim for revenue to reach 23.1 percent of GDP (6.015 billion MNT), expenditure to be 33.7 percent (8.789 billion MNT), and for only 10.6 percent (2.774 billion MNT) to be deficit.