Localities income from mining will increase

Ulaanbaatar /MONTSAME/ The cabinet at its meeting this Monday approved draft amendments to the law on budget and on Human Development fund, and resolved to submit them to parliament immediately. These amendments offer an increase in a percentage of income to be accumulated in localities’ budgets from the mineral exploration and extraction. The current law on budget regulates that five percent of the royalties goes to the local development funds in frames of implementing the state policy on promoting the localities’ development, while the payments of mining licenses directly go to the state budget. The motives for amending the laws derive from the necessary support from the local administrations and people in order to forward the mining operations. If the income from mining for localities would increase by a proper amount, mineral explorations and researches will intensify, thus, a mineral resources exposure will grow, the cabinet considers.