In November 2019, equilibrated revenue and grants of the General government budget reached MNT 842.9 billion, decreased by MNT 252.0 billion or 23.0% from the previous month and total expenditure and net lending reached MNT 901.7 billion, decreased by MNT 132.5 billion or 12.8% from the previous month.

In the first 11 months of 2019, tax revenue reached MNT 8.8 trillion, increased by MNT 1.4 trillion or 19.0% compared with the same period of previous year. This growth was mainly affected by increases of MNT 422.2 billion or 22.5% in income tax, MNT 323.1 billion or 22.8% in social security revenue, MNT 260.9 billion or 13.3% in value added taxes, MNT 175.0 billion or 26.4% in other tax, MNT 102.2 billion or 14.8% in excise taxes and MNT 101.3 billion or 16.4% in revenue from foreign activities.

General Government budget revenue was comprised of 81.6% of tax revenue, 8.7% of non-tax revenue, 8.8% of the future heritage fund and 0.9% of the stabilization fund.

In the first 11 months of 2019, total expenditure and net lending of the General government budget reached MNT 9.2 trillion, increased by MNT 1.2 trillion or 15.6% compared with the same period of previous year. This increase was mainly due to MNT 755.3 billion or 11.7% increase in current expenditure and MNT 561.2 billion or 45.9% increase in capital expenditure.

General government budget expenditure and net lending was comprised 78.2% of current expenditure, 19.4% of capital expenditure and 2.4% of net lending.

Source: National Statistics Office

In November 2019, the gross industrial output reached MNT 1.5 trillion, it is decreased by MNT 102.8 billion (6.6%) compared to the previous month.

In November 2019, the seasonally adjusted industrial production index was 171.5 (2010=100), decreased by 2.9% from the same period of previous year and by 3.6% from the end of previous year, whereas, it is increased by 1.5% from the previous month. In the first 11 months of 2019, in mining sector, coal, crude oil, gravel, fluorspar and iron ore are increased by 7.9-37.4% compared to the same period of previous year. In manufacturing sector, production of vacuum windows and doors, cashmere products, buuz and dumpling, wooden window and door are increased by 0.1-86.0%.

On the other hand, in mining sector, extraction of zinc concentrate, copper concentrate, extraction of molybdenum concentrate and gold are decreased by 2.3-22.9%. In manufacturing sector, productions of beer, sausage products, wooden products, alcoholic beverage, horse meat, copper cathode, fodder and combed cashmere are decreased by 0.5-34.5% compared to the same period of previous year.

In the first 11 months of 2019, the sales of industrial production reached MNT 18.4 trillion, increased by MNT 1.9 trillion (11.7%) from the same period of previous year. From the total sales of industrial production, MNT 12.5 trillion (68.1%) were export.

Source: National Statistics Office

The report says, in November 2019 in Ulaanbaatar, average daily concentrations of the sulfur dioxide and nitrogen dioxide in the air were increased by 0.028 mg / m3 or 82.5 percent and 0.007 mg / m3 or 15.9 percent compared with the same period of previous year, respectively.

An average daily concentrations of the PM10 particles and PM2.5 particles in the air were decreased by 0.084 mg/ m3 or 41.0 percent and 0.048 mg/ m3 or 43.9 percent compared with the same period of previous year, respectively.

Moreover, according to the air quality measurement stations in Ulaanbaatar city, cases exceeded the acceptable level in air quality standard of air pollution concentration in Ulaanbaatar were the most in the 1st micro-district, West Crossroad, Khailaast, Bayankhoshuu areas.

The National Statistics Office of Mongolia

The legislators’ resolution brings an 18-month review on the deals governing the copper-gold mine to a close, allowing the company to continue with an ongoing $7 billion expansion of the operation.

The news is something of a relief for Rio Tinto, which feared the government might try to completely renegotiate the agreements on the asset’s development — a 2009 investment agreement, a 2011 amended and restated shareholder agreement and a 2015 underground mine development and financing plan.

The resolution, however, recommends to explore options to improve the deal, including looking at the Mongolian government’s equity share in Oyu Tolgoi, a re-definition of the reserve report and updated feasibility report, and a renewal of environmental and water assessments.

“Adherence to these agreements by all parties has underpinned a total in-country spend of around $10 billion since 2010,” Rio Tinto’s chief executive copper and diamonds, Arnaud Soirat, said in the statement.

Soirat acknowledged there was still “a lot of work to do” to ensure Oyu Tolgoi reaches its full potential.

Oyu Tolgoi was discovered in 2001 and Rio gained control of it in 2012. The ongoing mine expansion is expected to lift production from 125–150kt this year to 560kt at full tilt from 2025, making it the biggest new copper mine to come on stream in several years.

The giant operation is one-third owned by Mongolia’s government and two-third held by Canada’s Turquoise Hill Resources (TSX, NYSE:TRQ). Out of Turquoise’s 66% share, Rio owns 51%.

Sergey Diorditsa, representative of the WHO in the country, handed over the antiviral medication worth 25,000 U.S. dollars to Davaajantsan Sarangerel, Mongolian minister of health.

"Influenza, an infectious disease of the respiratory system, represents a major burden for public health. The medication donated by the WHO will be given to children, pregnant women and seniors in public hospitals in the capital city," Sarangerel told reporters.

Prevalence of influenza and other respiratory diseases is now relatively low in the Mongolian capital thanks to the implementation of some preventive measures of flu and the reduction of air pollution in Ulan Bator, she said.

The drug was distributed to several public hospitals in the Mongolian capital.

USAID’s Business Excellence for Sustainability and Transparency project, implemented in partnership with Mongolian non-governmental organization Development Solutions, will provide technical assistance and training to increase the access of local entrepreneurs to needed financing to help grow and strengthen their businesses.

“Mongolia’s small and medium enterprises play a significant role in creating jobs and diversifying the country’s economy,” Ambassador Michael Klecheski said. “As a key partner in the Indo-Pacific, the United States is committed to advancing a private-sector led growth in a free, democratic society.”

USAID will work with government and private sector partners to foster an environment conducive to the growth of SMEs, including easier access to business financing, improved corporate governance, capacity-building training on transparency and accountability, and provision of small grants to disadvantaged enterprises. Since 2016, USAID support to SMEs helped improve their access to credit and has facilitated linkages between financial institutions and 750 borrowers, multiplying their investments 20 times over and creating more than 600 new jobs.

The U.S. government, through USAID, works with the Mongolian government, the private sector and non-government organizations to support Mongolia’s continued democratic development, facilitate sustainable, inclusive economic growth, and solidify its path to greater independence and self-reliance. In October, the U.S. and Mongolian governments signed an MNT17 billion ($6.4 million) expansion of the bilateral agreement to implement new activities that will promote good governance, strengthen the rule of law, secure reliable, efficient, and affordable energy; and encourage sustainable, private sector-led growth.

U.S. Embassy in Ulaanbaatar

President Kh.Battulga put a partial veto on the article of the State Budget Law for 2020 to increase social insurance premium by two percent, which would have collected a total of MNT 174.2 billion to state budget as well as an accompanying law on amendments to the regulation on the implementation of the Future Heritage Fund.

Also, a veto was imposed on the budget law article enabling a total of MNT 1.4 trillion of investment for development of a total of 386 buildings in 2021 and 2022.

However, Parliamentary Standing Committee on Budget, on Tuesday, accepted the partial veto on social insurance premium growth and rejected veto on the Future Heritage Fund and the veto on the construction investment.

At today’s parliamentary session, the partial veto on social insurance premium was backed by 51.2 percent of parliamentary members in present voting in favor of it.

Concerning the veto approval by the Parliament, Speaker G.Zandanshatar gave an order to relevant government officials to work on the amendments to the budget law for next year and submit to the Parliament.

In her opening remarks, Deputy Minister of Health, Head of the consultative committee of the project L.Byambasuren noted that two criteria are required to be ensured for water supply, sanitation, and hygiene facilities that are being newly built, which are to have new designs, such as being environmentally friendly, energy and water efficient, and being climate resilient.

The aimags of Bayankhongor, Gobi-Altai, and Zavkhan will benefit the results of the project and Thus, with the successful implementation of the project alongside these aimags, the Ministry of Health, and the Ministry of Education, Culture, Science and Sports are giving special significance to promoting the best practice to other aimags.

One of the works successfully implemented in the project framework is the construction of hot water facilities in school dormitories of rural soums, enabling an opportunity for the students staying at the dormitory to keep good personal hygiene, which will reduce the cases for seasonal flu and illnesses in children.

The committee came to the decision to further develop sanitary facilities in schools and kindergartens by introducing new technologies and innovation, and improving the cooperation and information exchange between aimags and soums in the coming year.