BUDGET DEFICIT FORECASTED TO BE 9.5 PER CENT OF GDP

Ulaanbaatar /MONTSAME/ Bills on 2018 Fiscal framework statement and 2019-2020 Budget assumption were submitted to the Parliament. The documents indicated that budget deficit in GDP would be 9.5 per cent in 2018, 6.9 in 2019 and 5.1 per cent in 2020 in compliance with goals to ensure budget unity in the midterm, to reduce budget deficit in stages, restrict expenditure growth, stabilize Government debt in legal threshold, ensure macroeconomic growth through budget stabilization. Fiscal framework statement bill was developed following to preliminary performance report of 2016 budget, midterm budget indicators, which agreed within the framework of the Extended Fund Facility program to be implemented with the International Monetary Fund and special fiscal requirements, which is defined in the Fiscal Stability law. As a result of the Extended Fund Facility program, it is expected that basic conditions would be created to increase investment through reviving their trust and to raise credit rate, lowering loan interest. Moreover minerals’ price increase tendency in the world market is expected to give stimulus to start big projects, supporting economic growth and lowering payment balance deficit. B.Ooluun