2015 budget cuts


Parliament is set to make amendments to the 2015 budget of the Mongolian government. Parliament previously approved the 2015 budget revenue at 7.15 trillion MNT (29.8 percent of GDP), total expenses at 7.59 trillion MNT (31.7 percent of GDP), and the total deficit at 439.2 billion MNT (1.8 percent of GDP).
The state is expected to cut total expenses and deficit in 2015 by 100 billion MNT.

The budget cut will affect the following projects.

Children’s welfare to be issued to only those in need

Since 2013, the state has handed out 20,000 MNT every month for children under 18 years of age. Starting from next month, the 20,000 MNT grant will be given only children who are most in need of financial assistance.

Some members of Parliament stated, “We mustn’t discriminate children. 20,000 MNT must be given to all. Instead of cutting the budget for children, other activities should cut expenses such as; cuting vice ministers’ positions and cutting the budget for travel.” But this statement was not supported by the majority.
According to statistics, a total of 218.2 billion MNT was given to 990 thousand children in November from the Human Development Fund.

Students to be given grants based on academic merit

Over a year ago, the government changed terms and policies of the monthly student stipend of 70,000 MNT. The stipend is to be given to students based on academic merit and only to schools that have a sufficient rate of employment of graduates starting next year.
“The law will be implement completely starting from next year,” stated Prime Minister Ch.Saikhanbileg.
But experts from the education sector have pointed out that the criterion for the stipend isn’t clear as some schools grade their students high even though they rarely attend classes.

limit set on civil servant retirement bonus

When civil servants retire, they get a bonus that equals to 12-36 months of their salary. The bonus has been reduced to equal 12 months’ salary by the government.
Over 100 billion MNT is expected to be saved through the deduction. However, civil servants who will receive bonuses that is 24 months’ salary lesser that if they had retired this year believe the decision is discriminatory and unfair.

Herders to pay taxes

The Prime Minister recently announced the new tax pool that will be formed next year. For a long time, herders have neglected on paying taxes. Starting next year, provincial governments will decide the terms and impose taxes for herders. Mongolia has over 50 million cattle. If a tax of 500 MNT is charged from each cattle, the total tax revenue will amount to 250 billion MNT per annum.
In 2010, taxes on herders begun to surface in Parliament but it turned into monetary support for herders who produce wool and cashmere. The support cost the government over 20 billion MNT each year.

Expenses on uniform of public servants to be cut

The uniform budget of state employees, except police, emergency management agencies, customs officers and soldiers, will be cut to reduce inefficient expenditure. Organizations such as, social insurance and tax collectors will not be required to wear uniforms.
The government originally wanted to cut 11 thousand government positions to cut expenses. But the decision was not supported by the cabinet as job cuts will require 38 billion MNT for layoff settlement.

Grants for honored mothers to be stopped if children are above 18

Honored mothers, who receive a yearly grant of 100,000 MNT to 200,000, will only receive their grants if their children are under 18 years of age starting next year. Mothers who received honorary medals receive grants for a lifetime, even after their children became adults.

Source: news.mn

Short URL: http://ubpost.mongolnews.mn/?p=12885

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