AKIPRESS.COM - The State Great Khural (Parliament) of Mongolia approved a draft of the 2017 public budget, 2017 public budget framework, 2017 budget for the Social Insurance Fund, and an overview of fiscal policy from 2018 to 2019, reports The UB Post.

According to the 2017 public budget, revenue is expected to make 23.3 percent of GDP, expenditure – 32.3 percent, and deficit – 9.1.

The Cabinet of Ministers expects to reach a three-percent economic growth in 2017 by moving forward on mining mega-projects. The government of Mongolia says that taxes will not be increased, to help create stability in the tax environment. The Cabinet is aiming to improve infrastructure in mining sector and to generate budget revenue by developing construction and investment to accelerate mega-projects.

The state’s administrative expenses (salaries and other asset expenses) will be cut by one percent in 2017.

Funds to promote healthcare, sports, arts and culture that have been included in the 2017 welfare and education programs did not see significant budget cuts. People aged 65 and older will be eligible to receive 50,000 to 200,000 togrog (depending on their age) as financial aid during Tsagaan Sar and the Naadam Festival, and 20.5 billion togrog has been budgeted to provide seniors with financial assistance.

89.5 billion togrog has been budgeted for a onetime payment of retirement allowances for employees and officers retiring from the public sector to maintain their welfare aids.

The state will provide 104.5 billion togrog to finance student loans, and 14.5 billion togrog has been budgeted for scholarships for students who have been accepted to the world’s top universities. 9 billion togrog has also been included in the 2017 budget for the operational and training costs of private and public polytechnic colleges. Cash allowances in the amount of 161.5 billion togrog will be distributed to targeted groups of children in 2017. 5 billion togrog for childcare has been allocated to help continue childcare service programs.

The salaries of state prosecutors will be increased with state budget funding of 9.5 billion togrog, and the budget of the Constitutional Court included additional 341.8 million togrog for salary increases for judges in 2017. The state will only fund critical projects in education and healthcare, and repairs for heating pipes requiring upgrades in Ulaanbaatar will be funded. The operating expenses of state organizations will be cut from 10 to 100 percent, depending on their duties.

Expenditures for a number of state-funded programs and events will be reduced by 410 billion togrog. The state will not fund any new construction projects through concession agreements in 2017.

The Parliament approved reducing the quantity of domestic bonds issued, subject to budget deficit, and says it will promote economic growth by ensuring the effective spending of foreign loans and aid, and funding only cost effective projects. A measure to reduce interest expenses to 2016 levels by using more optimal methods of debt control was also approved by the Parliament.

1 U.S. dollar equals 2475.00 Mongolian togrog, according to current rates.