Parliament approves Budget Framework Statement for 2022 and Budget Assumptions for 2023-2024Politics
Ulaanbaatar/MONTSAME/. At its plenary meeting on May 13, the
Mongolian Parliament approved the bills on Budget Framework Statement for 2022 and
Budget Assumptions for 2023-2024 in its first reading.
The Budget Framework Statement for 2022 and Budget Assumptions for 2023-2024 were developed by the government based on the Laws on Fiscal Stability and State Budget, and key macroeconomic indicators.
In the budget revenue assumption for 2023-2024, the volume of exports of major mining products such as gold, copper and coal will still be highly dependent on the world market prices as in previous years.
The government projects that thanks to the implementation of comprehensive measures on recovering the economy and reducing the budget deficit, the medium-term economic growth will be 4-6 percent and the budget deficit will be around 2 percent of the GDP by the end of 2024, in addition with the stabilized government debt to GDP ratio to be not excessive of 60 percent.
About the macroeconomic projections for 2022-2024, the government has set a goal to bring Mongolia's economic growth to the level of long-term growth or about 6 percent in 2022-2024.
Economic growth will be fostered by intensive construction works of oil refinery, Oyu tolgoi underground mine, railway, ‘Youth’ I, II and III residential complexes, wastewater treatment plant and energy projects. The post COVID-19 world economy is likely to contract to a great extent; however, the economic capacity of China will be enhanced. The government considers that this economic growth of China will serve as a condition to keep higher demand and stable prices of Mongolian main export products.