Minister of Finance submits the draft budget amendments to Parliament

Summary: Yesterday, the Ministry of Finance submitted drafts of the 2016 budget amendments, the 2016 budget of the Social Insurance Fund and the 2016 budget of the Human Development Fund to the Speaker of Parliament M. Enkhbold. Based on the projected performance for the rest of 2016, the state budget deficit will reach 20.6% of the GDP; therefore, the Minister of Finance B. Chojilsuren explains that the budget deficit will decrease by more than three percent, reaching 18.2% of the GDP through implementing the proposed amendments to increase some taxes and cutting the social spending. Following are some highlights of the proposed amendments to the 2016 budget amendment: increase individual income taxes to 25% for individuals who earn more than 30 million MNT annually; impose taxes on the interests of saving deposits; increase of excise taxes on alcohol and tobacco by 20%; increase taxes on vehicles between 3-15%; and extending the retirement age. The details of the draft amendments will be discussed during the Parliament session, which is tentatively scheduled to take place on August 25-26^th.  

Keywords: budget amendment, economic decline   The Official Gazette /pages 2/

City Council to cut civil service jobs by 20-30%

Summary: Chairman of the City Council Ts. Sandui reported that the City Council is developing budget amendments because the city council's budget operational expenditures has been reduced by 72 billion MNT. This is mainly because planned revenues from corporate income taxes and proceeds from the privatization of state property were not collected. Therefore, the City Council cannot afford to continue some of the projects that were previously planned. Additionally, the City Council is searching for a way to reduce its expenditures and is planning to reduce the City Council staff by 20-30%.

Keywords: government stability, employment   The National Post /pages 2/

B. Byambasaikhan – ‘Erdenes Mongol will support the drive for economic diversification’

Summary: CEO of Erdenes Mongol B. Byambasaikhan stated that a $35 million loan from ADB will be used for strategic renovation of Erdenes Mongol, specifically to strengthen the management and investment capacities, allowing it to more effectively support the country’s drive for economic diversification. Additionally, he noted that the ADB’s technical assistance loan will help the company draw up a full corporate strategy for its operations, with midterm and long-term targets. Erdenes Mongol will spend the money on improving the efficiency and activities of its subsidiaries, including Erdenes Tavan Tolgoi, Baganuur, and Shivee Ovoo, and will work to draw in real investment and implement their projects in line with international standards. B. Byambasaikhan noted that since its establishment in 2007, Erdenes Mongol’s goal was to become a professional institution that implements large scale projects and that they plan to use this loan to embed new systems for investment decision making, sound corporate governance, and prudent risk management to reach their objective.

Keywords: economic diversification   Today /page 1, A5/

Proposed amendments shock citizens  

Summary: The budget amendments proposed by the Government left citizens in shock. The scale of changes that the Government is proposing affects citizens of all ages, including children and students. For instance, only 60% of Mongolian children will qualify for the social welfare program, Children's Money, which previously awarded 20,000 MNT each month to every Mongolian aged 18 and under. Now the Government will rank each household based on income and plans to refund the remaining 40% of the children in 2019 when the economy improves. The monthly allowance of 70,200 MNT for students who have a GPA above 3.2 will no longer be available and public transportation discounts for students will be reduced by 50%.

Keywords: economic decline, budget amendment   www.medee.mn

Summary: AmCham Mongolia is offering an exclusive business promotion opportunity for our members through sponsorship of our Daily Newswire and Weekly Policy Note. The reach of these newsletters is expanding daily and is currently read in over 10 countries around the world and over 10,000 times per month. As a sponsor you will receive direct exposure from over 800 subscribers on our database and over 12,000 followers on social media daily. As a sponsor, your company name and logo will be displayed in each post on our social media banner as well as in the Daily Newswire and Weekly Policy Note’s commercial spaces with a direct link to your website. Please visit the AmCham website here to see the different packages available and contact Sukhee, Director of Communications, at sukhee@amcham.mn 

Keywords: draft law, pension   Google.com /page 2/