MPP forms a new cabinet

Government to focus on better living for families
MPs pondering the approval of MPP’s new cabinet
On January 27, a new cabinet composed solely of MPP members was formed when Parliament approved a resolution replacing some outgoing ministers with new persons. D.Khayankhyarvaa, who was promoted to the post of Finance Minister won 67.9 percent of total vote, D.Tsogtbaatar became Minister of Nature, Environment and Tourism with 64.7 percent vote, J.Enkhbayar as Defense Minister with 67.8 percent vote, Ts.Dashdorj as Minister of Road, Transportation and Urban Development with 64.2 percent support and N.Khurelbaatar as Health Minister with 71.7 percent support.
A conflict situation occurred at the parliament between the MPP and Prime Minister on one side and the President and DP parliamentary group on the other side when nominations of new candidates for Cabinet Ministers were discussed. The DP group left the meetings taking a break leaving the appointment of new ministers in deadlock for several days. The President and the DP group insisted on abolishing the post of the First Deputy Prime Minister which, as they explained, was not necessary today because this position was created for the joint government and now new government would be formed with MPP members only. They also proposed to appoint ministers who are not parliament members. However,the decision to abolish the post of First Deputy Prime Minister was resolved at the joint meeting of the MPP Governing Council and the MPP parliamentary group and the discussion of appointing new ministers continued without delay.
The following changes were introduced with the staff cut in the cabinet. Fair Competition and Consumers Authority and the Standardization and Measurement Authority, which were under responsibility of the First Deputy Prime Minister, have been transferred to the Deputy Prime Minister. Responsibility for the State Registration General Authority and Authority on Intellectual Property were given to the Minister of Justice and Home Affairs.
Speaking at the parliamentary plenary session in connection with the appointment of new ministers, PM S.Batbold stressed that the Mongolian People’s Party won the 2008 elections. Over the past 20 years, the MPP made a realistic conclusion in the vitality of political stability and of joint efforts of political parties to develop the country. By setting up a joint government with the DP, the MPP made the right political settlement by giving priority to the consensus rather than creating a conflict situation, to overcome crisis, to resolve argument and misunderstanding by means of negotiating and working together not for the party and election interests, but for the interests of the nation, not for empty promises, but for a realistic approach.
This initiative replaced 20 years of policy division and confrontation by a new tendency of political thinking which led to social understanding, to joint construction, to development and progress which brought a new culture of consensus to Mongolia’s political life. The PM mentioned many positive accomplishments achieved in the period of the joint government. “A very short time is left for the MPP government now to fulfill our mission. For that, we must exert our efforts to finish what we started and to accomplish what we are pursuing. We will be resolute in bearing all responsibility to reach our goals’, S.Batbold said, and underlined issues which the new cabinet focuses attention.
Priority attention will be directed at improving people’s living standard and increasing profit and incomes.
For this purpose, the government announced 2012 as the Year of Household Support and approved the National Program supporting household development. Under the framework of this program, income of families living under subsistence level will increase and an effective welfare policy aimed towards people in need will be implemented. The government will work to bring lowincome households to medium-income standard and to increase the number of medium-income households. 
Households striving to improve their living standard will be encouraged and stimulated. A new stimulation and encouragement structure will be implemented. 
In 2012 the government will increase wages and pensions by more than double. Wages and pensions are supposed to increase 2-fold against 2008. Tgs1 million in cash will be granted to retired persons and disabled people, sources for giving Tgs 1 million to the rest of the population will be created and policy will be worked out to grant this money. 
In order to increase society’s middle class, aside of taking effective measures directed at social welfare, services, pensions and complex insurance policy, the MPP will take resolute actions to support small and medium enterprises and family macro businesses. SMEs will be released for a definite period of time from paying taxes. We intend to realize this before the election. We also intend to create a taxation system where the rich and wealthy pay more money in taxes and ow and medium income companies will be taxed less. We plan to realize this kind of tax system in deeds, not in words. Our government intends to implement a new loan granting policy and help citizens and small businesses be free from interest burdens. The legal environment for providing citizens with financial freedom will be created and programs and projects will be implemented. We will work out a state coordination policy for alcohol and tobacco industries.
Some state regulatory policies will be implemented in price problems for some basic goods and products, without retreating from market principles, the Prime Minister said.
Prime Minister S.Batbold expressed confidence that in the framework of economic growth, construction development attention will be paid to such scheduled programs and projects like the “New Railways”, “New Construction”, the power plant V, energy sources of central zone, paved inter-aimag roads, a fiber cable network connecting all aimags and soums, support for the initiative of producing liquid fuel and gas products from coal in order to ensure economic security, cooperation of the state and private sector will be encouraged relying on natural wealth. Attention will be paid to processing industries, to the intensive development of Tavan Tolgoi construction, to strengthening and enhancing accomplishments achieved in traditional livestock and agricultural sectors, increasing labor evaluation of herders and crop farmers, to intensive processing of raw material of animal origin at home, to development of capital market innovations, mobilization in a sustainable way of monetary and financial reserves, effective introducing of Cambridge standards and innovations in the education and health sectors, paying attention to civil society issues, introducing and shaping culture, reaching an accord in all branches, and guaranteeing and implementing government policy regarding civil society.
“In order to successfully implement all these goals”, the PM stressed, “we need to have good, compact, professional, sustainable, responsible, effective governance working for society and for the people.
Our task is to create reliable conditions for such governing system. Good governance must be open governance with all financial activities open for all. Purchasing of goods and services by state and local property, state and local budget spending should be held on the internet and open for the people.
Measures will be taken to improve the system of license granting and reduce paperwork and bureaucracy. The government will pay due attention to the development of progressive information technology and will create direct lines and channels to listen to the voice and proposals of the people,” S.Batbold told at the parliament.



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