CABINET’S HALF-YEAR PERFORMANCE RATE 41 PERCENT

Image Ulaanbaatar /MONTSAME/ During its regular meeting on Tuesday, the Cabinet reviewed a performance and realization of the 2016-2020 action program. Acting Prime Minister J.Erdenebat’s Cabinet realized 41.5 per cent of its 2017 action plan in the first six months of the year. In particular, an implementation rate of the Cabinet’s policy directed at overcoming the economic difficulties stands at 48.9 percent, policy on ensuring sustainable economic growth--at 35.4 per cent, social policy--at 44 per cent, environment and green development policy--at 39.6 per cent and governance policy--at 41.9 per cent in the first six months of 2017. The Cabinet successfully reached an agreement with the International Monetary Fund (IMF) on carrying out its Extended Fund Facility program in Mongolia in order to overcome the economic crisis and ensure sustainable economic growth. The Cabinet issued a new USD 600 million bond ‘Khuraldai’ with an interest rate of 8.75 per cent, in exchange for the USD 580 million bond released by the Development Bank of Mongolia (DBM) in 2012, as bondholders of the 82.07 per cent or USD 475 million units bonds consented to exchange their shares. By means of revising the relevant laws and regulation, the Cabinet deducted 90 per cent of taxes for taxpayers fulfilling certain criteria such as net revenue of less than MNT 1.5 billion and working in food, textile, garment, crop production, animal husbandry and construction material manufacturing industries. By establishing an Education Loan Fund and adopting a Procedure for Student Development Loan, the Cabinet facilitated opportunities of applying for the loan to about 70 thousand students. The required fund in providing the loan, MNT 90 billion, was projected in the 2017 budget. The Cabinet launched a Longevity Grant benefit for elders who now receive benefit of MNT 100-500 thousand twice a year. The Cabinet also reduced pension loan interest from 18 per cent to 15 per cent, creating possibilities for further reduction. In the first six months of 2017, the economic growth reached 5.3 per cent, budget deficit decreased by MNT 590 billion or three times, budget revenue exceeded by MNT 330 billion and external trade balance increased by MNT 475 million. The Cabinet assigned its members and authorities of government agencies to ensure the implementation of over 130 objectives and measures which were reflected in the Cabinet’s 2016-2020 action program, but haven’t been carried out or don’t require extensive fund. Kh.Aminaa