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Draft bill on Treasury Fund introduced

By E.DARI

In order to create benefits from natural and mineral resource profits for future generations, the President of Mongolia initiated a draft bill on the future inheritance, or Treasury Fund. The draft bill initiated by the President was discussed in the President’s Civil Hall.
Opening the consultation, advisor to the President, L.Dashdorj emphasized the lack of a clear system and policy to leave significant income and revenue from natural treasures and mineral resources for the next generation, and the importance of accumulating wealth for the long-term and nurturing it.
If 500 million USD were accumulated in the Treasury Fund annually, a total of 230 billion USD would be gathered after 50 years. The draft bill is also believed to include policy that supports Mongolbank’s currency reserves. The bill opens up the possibility of protection from losses caused by declining trade and complex losses in the budget over 20 years through the Treasury Fund.
According to the draft bill, the accumulation of the Treasury Fund will begin in 2016. In 2025, up to 25 percent of the accumulation will be spent on education. The returns from the Treasury Fund will begin to be spent in 2050, which means the right to spend it will be given to future generations.
The consultation was hosted by Civil Participation and Economic advisor to the President, L.Dashdorj, and was attended by the staff of the Finance Ministry and scholars and teachers from the National University of Mongolia, the Institute of Finance and Economy and the Academy of Management.

Short URL: http://ubpost.mongolnews.mn/?p=7619

Posted by on Jan 24 2014. Filed under Politics. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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