UNITED STATE BUDGET FOR 2011 APPROVED

Ulaanbaatar, Mongolia /MONTSAME/ At its Thursday plenary session, parliament discussed a draft amendment to the law on mineral resources and draft law on the united state budget of Mongolia for 2011.
At the beginning of the session, MPs got acquainted with proposals and conclusions, drawn up by parliamentary Standing Committee on economy for the final reading of a draft law on amending the Law on mineral resource. Since there were no questions or clarification, the draft was passed by 79.1 percent of the total number of MPs.
The same day, parliament held a second reading of the draft of the united budget for the year 2011. According to the expected execution of this budget, a growth of 7.5 percent is expected, but because of possible complications of the meteorological conditions a sharp decline is likely to take place in the agricultural sector. In manufacturing and service industries, a growth will go beyond 10 percent. According to preliminary estimates of international organizations, a rate of copper on the world market is to be relatively stable that will positively affect the economic sector of our country and lead to economic growth.
Thus, according to preliminary estimates outlined in the draft budget, the GDP in 2011 will be 7 836.4 milliard tugrug, real GDP 4 128 milliard tugrug or real economic growth - 8.5 per cent in 2012, it will be 7.8 percent and 20.8 percent in 2013. Here, the inflation rates from 2011 to 2013 are going to hold back within 8-9 percent.
Price forecast production of mineral resources has been compiled based on monitoring of financial and banking institutions in accordance with provisions reflected in the law on budgetary stability. Next year, the price of gold on the world market will be
1 350 US dollar.
After consideration, the draft law of the united state budget was sent to the Standing Committee on economy for the preparation for the third reading. It was done and submitted to the session at 21 o'clock in the evening the same day. After the second reading, parliament made some changes to the draft of the state budget for 2011, also to the draft Budget, the budget of the Fund for Human Development for the next year. So, according to the changes, the total amount of income of the budget for 2011 will be 3 milliard 304.6, or 42.2 percent of WFP, the total cost--4 084.1 mln tugrug, or 52.1% of GDP, the total deficit - 779.5 mln tugrug or 9.9 percent of GDP. Changes in indicators of increased deficit by 1.3 percent.
In connection with the discussion of State budget for next year, parliament held a first reading of the Great State Hural Resolution on the discussion of certain measures on the issue. Extending the third and fourth reading of the above drafts parliament voted on each provision of these drafts. Thus, MPs voted 87.5-97.5 percent for their adoption at a plenary session on Thursday.

source: www.montsame.mn