Mongolia's Government Submits Draft Laws to Address Budget Deficits Amid COVID-19 Pandemic

The State Great Hural's Standing Committee on Education, Culture, Science, and Sports convened on January 28, 2022, to discuss amendments to the 2022 Budget Law of Mongolia and the 2022 Budget Law of the Social Insurance Fund. The government has mobilized all available financial and budgetary resources to protect citizens' health and income, support businesses, and revitalize the economy, with a total allocation of 6.9 trillion MNT. The proposed budget amendment aims to increase old-age pensions while maintaining the total budget deficit at the level specified in the Fiscal Stability Law and the 2022 Fiscal Framework Statement.

Key Takeaways:

• The Mongolian government has introduced draft laws to address budget deficits amid the COVID-19 pandemic, aiming to increase old-age pensions while maintaining the total budget deficit.
• The proposed budget amendment seeks to mobilize internal resources to increase pensions, with a focus on reducing state budget expenditures through adjustments between general budget governors and increasing the budget of the social insurance pension fund.
• The government has implemented measures to protect citizens' health and income, support businesses, and revitalize the economy, with a total allocation of 6.9 trillion MNT.
• The Comprehensive Plan to Protect Health and Recover the Economy has had a positive impact on the 2021 budget execution, leading to complete vaccination of the target population.
• Members of Parliament have expressed support for the budget amendment, with the majority voting in favor after considering the dissenting opinion of State Great Hural member Ch.Undram.
• The proposed budget amendment aligns with the Fiscal Stability Law, the 2022 Fiscal Framework Statement, and the 2023-2024 Fiscal Projection Law, ensuring the total budget deficit is maintained at specified levels.

Statistics:

• Total allocation to protect citizens' health and income, support businesses, and revitalize the economy: 6.9 trillion MNT.
• Total budget deficit to be maintained: in line with the Fiscal Stability Law, the 2022 Fiscal Framework Statement, and the 2023-2024 Fiscal Projection Law.
• Proposed increase in old-age pensions: through mobilizing internal resources and adjusting state budget expenditures.
• Total vaccination of target population: completed as part of the Comprehensive Plan to Protect Health and Recover the Economy.

Sources:

• The meeting of the Standing Committee on Education, Culture, Science and Sports of the State Great Hural ( January 28, 2022 )
• The Media and Public Relations Department of the State Great Hural
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