Parliament reviews 10 trillion MNT recovery plan

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During its plenary session on April 9, Parliament was introduced to the implementation of the comprehensive response plan worth 10 trillion MNT for economic recovery and health protection.

Emphasizing that in order to protect the health and income of citizens and revive the economy, the government of Mongolia approved the comprehensive plan by Resolution No. 42 of 2021, Minister of Finance B.Javkhlan said, “The plan includes measures to increase access to credit, create a healthy and active lifestyle for citizens, support producers and service providers, maintain jobs, provide housing, support agricultural production, herders’ incomes and livelihoods, and develop non-mining export products.”

“The plan is based on the principle of not putting pressure on the state budget and government debt. Job support loans and agricultural loans are planned to be implemented at banks’ own expense, the government is expected to provide interest rate support, and repo-financed loans and mortgages are planned to be implemented at banks’ and Mongol Bank’s repo-financing sources.”

“A total of 6 trillion MNT is planned to be spent on job support, mortgage and repo financing loans, 500 billion MNT on in agricultural loans, 1 trillion MNT on housing infrastructure, 500 billion MNT on youth employment training and 2 trillion MNT on financing of large projects,” he continued.

“The government aims to restore key macroeconomic indicators to 2019 levels by implementing the plan. With the implementation of the plan, business activity will recover from 2021 and economic growth is expected to exceed 5.2 percent. We aim to bring Mongolia’s economic growth to the level of long-term growth of about 6 percent from 2022 to 2024. In addition, low-interest loans to businesses will reduce business costs and supply-side inflationary pressures,” the finance minister added.

The minister also noted that the inflation rate is expected to be around 6 percent in the medium term.

During the session, Parliament supported to return draft amendments to the Law on Corporate Income Tax, Law on Securities Market, Law on Insurance and Law on Audit to the bill initiators, and passed a parliamentary resolution on return of bill in accordance with Article 41.10 of the Law on Parliamentary Procedure.

LAW ON GOVERNMENT SPECIAL FUNDS AMENDED

Parliament passed the amendment to the Law on Government Special Funds last week.

The adoption of the amendment creates a legal environment for the establishment of the Fund for Children to support child development, protection and participation.

It states that the fund will be funded through auctions for state license plates, donations and grants from foreign countries, international organizations, individuals and legal entities to support children’s development, cultural and artistic performances and sporting events.

Moreover, the amendments to the Law on Child Rights and the Law on Road and Transport were approved.

Misheel Lkhasuren

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