Measures to support people’s livelihood to continueВидео
A presentation on making amendments to 2020 general budget of Mongolia has been delivered at the Cabinet meeting convened on August 5. The Cabinet decided to continue some measures, which are being taken to provide support to people’s livelihood and health and preserve the employment amid the COVID-19 pandemic, until the end of this year. More specifically, actions including monthly allowance of MNT 100 thousand to each child, increased social welfare allowance by MNT 100 thousand as well as MNT 100 thousand to children with disabilities who need permanent care, will be granted until the end of this year.
Six-month exemption of monthly social insurance contributions paid by employees and employers has been outlined in the law on economic measures approved by the Parliament last April. However, the budget amendment bill reflects it to be 10 percent; five percent to be paid by an employee and the rest 5 percent by an employer.
The measure on exempting entities, whose annual sales revenue is less than MNT 1.5 billion, from corporate income tax will kept valid. Corporate income tax imposed on rental income of entities who reduced their rental payment, will be included in it as well. Furthermore, the Government plans to keep the exemption of customs and value added taxes on medical equipment, which are required for implementation of projects in healthcare sector, Finance Minister Ch.Khurelbaatar reported.
Budget worth MNT 322 billion will be required for granting child allowance and MNT 144 billion for making social insurance premium 10 percent. A total of 105 thousand entities will benefit from the annulment of corporate income tax for all entities. Healthcare sector expense will be increased by MNT 118.6 billion. Around 71 percent of it is planned to be allocated to protective gears for hospital staff, medicines and hospital equipment while MNT 22.3 billion will be spent on seasonal flu and COVID-19 vaccines. Moreover, MNT 3 billion will be allocated to equipment purchase for a laboratory of the National Center for Communicable Diseases. Aside from it, expense for overtime salary for front-line healthcare workers and public workers has been reflected in the bill, noted the Minister. In addition, MNT 6.2 billion will be spent on providing officers of border protection, specialized inspection, emergency management, military and police with protective clothes and items.
During his briefing, the Finance Minister also cited that the global economy is expected to shrink by 5-6 percent in 2020 because of the COVID-19 pandemic. “The economy will shrink in 2020, but it will grow up by 5-7 percent in 2021 according to conclusions made by experts and professional organizations. Estimations on budget amendment have been made in compliance with it,” the Minister added.