Working group on establishment of sovereign wealth and unified accumulation funds meets

2021-04-30 16:03:19

Ulaanbaatar /MONTSAME/. On April 29, Prime Minister L. Oyun-Erdene held a consultative meeting with members of the working group in charge of drafting frameworks for the Sovereign Wealth Fund and Unified Accumulation Fund. Mongolia currently has the Future Heritage Fund and Fiscal Stability Fund.

Deputy Minister of Mining and Heavy Industry O.Batnairamdal introduced a proposed Development Fund, which will help to diversify priority economic sectors, improve competitiveness with investment in infrastructure, increase jobs and create a wealthy middle class with earnings. 

The Development Fund will be operated in coordination with the Future Heritage Fund and the Fiscal Stability Fund with a view to creating a Sovereign Wealth Fund system. 

The Unified Accumulation Fund aims to establish the proper management of the Social Insurance Fund, bring the fund to a loss-free level, establish an independent social insurance system, and source the pension reserve fund from mineral resource income and subsidized mortgage funding. 

Minister of Labor and Social Welfare A. Ariunzaya introduced a proposed policy on a gradual transition to a system of providing all citizens with comprehensive education, healthcare, pensions, housing, and social security through the Unified Accumulation Fund.

The working group members were instructed to revise their drafts, incorporating more proposals and suggestions, and present them back to the Cabinet.