DEMPARTY FACTION MEETS

Ulaanbaatar, Mongolia /MONTSAME/ At its meeting on Monday, the parliamentary faction/group of the Democratic Party (DP) discussed and then backed draft laws on the state budget for 2013, on the Human Development Fund (HDF), and on the social insurance fund. Then the gathered exchanged views on ensuring the economic development of Mongolia, providing people with jobs, and on f works of the DP. After the Minister of economic development gave a report, a matter was backed on issuing governmental bonds. The democrats consider as vital the issuing of the middle-term five billion bonds because it will ensure a balance between the global economic crisis and planned developmental ways. In the first phase, bonds of MNT 1.5 billion will be issued for the great construction to be done by the cabinet for reform. "Again, the bonds must not be spent for welfare or for budgetary deficit recover, they should go for ready projects at the private sector, for supporting export and for reducing the interest rates of commercial banks,” the faction stressed, adding that a control over it must be tough. As for the budget for 2013, the faction head D.Erdenebat underlined that this budget is the very first one to maintain the law on budgetary stability. A deficit of the budget shall not exceed two per cent in equivalent to the Gross Domestic Product, he said. The faction considered as necessity to set up a working group to focus on the state budget, especially on whether to grant soft-loans to small- and middle-sized productions. D.Erdenebat also said a clause on restricting cash supply will be reflected in the 2013 state budget. B.Khuder