Budget surplus reaches MNT 549.7 billion as exports stabilize www.zgm.mn
In the first eight months of 2019, total equilibrated revenue and grants of the General government budget amounted to MNT 6.9 trillion and total expenditure and net lending amounted to MNT 6.3 trillion, resulting a surplus of MNT 549.7 billion in the equilibrated balance, according to the National Statistics Office (NSO). The budget surplus increased by 34 percent from the same period of the previous year, as a result of stable mineral product prices and exports.
The budget deficit reached MNT 1.8 trillion in the first eight months of 2016, due to the economic crisis. Tax revenues, generate more than 80 percent of the budget revenue increased by 21.5 percent from the previous year, reflecting the budget surplus. However, total expenditure and net lending of the General government budget increased by MNT 920.3 billion or 17 percent year-over-year. This increase was mainly due to MNT 532.1 billion increase in current expenditure and MNT 460.4 billion or 69 percent increase in capital expenditure.
In the meantime, NSO also announced the new debt statistic. The gross external debt of Mongolia increased by 7.3 percent to USD 29.7 billion in the first half of the year. The general government debt increased by MNT 1.6 trillion or 7.6 percent and reached MNT 22.7 trillion. year. In general government debt, foreign debt accounts for 85 percent or MNT 19.3 trillion.
The government will pay international bonds from 2021. In other words, Mongolia will pay a total of USD 2.9 billion for the next four years, which is the main challenge for the country.
Furthermore, the total foreign trade turnover increased by 11.9 percent in August 2019, mainly due to the 15 percent increase in exports. The rise of coal and unprocessed or semi-processed gold exports has been the key driver as well.
Foreign trade surplus increased by USD 426.6 million to USD 1.3 billion from the same period of the previous year. Imports indicate that mining-related products are the main reason for foreign trade surplus. For example, imports of diesel fuel, transportation, and parts of vehicles increased by USD 176 million.
Published Date:2019-09-16