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Daily NEWSWIRE
August 9, 2016
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Government

Irregular Parliament session to address the economic crisis  

Summary: There is speculation that an irregular Parliament session will take place at the end of this month, however it is still unclear what will be the agenda and specific timeframe of this session. The Parliament will discuss the Government’s Action Plan for the next 4 years and its proposed policy actions; the 2016 budget amendments; and the proposed economic stabilization program. The MPP claims they formed a professional government to address the economic recession; the policy actions that result from the irregular session will be a test of that. Currently, the Ministry of Finance is working on the 2016 budget amendments. Once the first draft is ready, the Ministry intends to submit it to the Cabinet.

Keywords: government stability, economic reforms     The Official Gazette  /pages 1, 2/


MP J. Batzandan – “The DP became like a person without a spirit”

Summary: MP J. Batzandan shared his perspectives on the political and legislative developments. MP Batzandan emphasized that all the actions being taken by the authorities contradict the promises made during the election. He noted that, although they claimed to be a professional government, there are a number of unprofessional ministers. Furthermore, the “double-deel” practice is widespread. The overwhelming win by the MPP is explained by a faulty election system and now, the voices of 40% of the voters are not represented in the Parliament. It is true that the DP has undertaken bold reforms, but it is also true that the leaders of the party have made numerous missteps. The DP was heavily engaged in internal power battles that led to the loss in the elections. Batzandan stated that now the DP needs to do fundamental reforms and move from this unhealthy practice of appointing the party chairman from leaders of the party factions. The DP also needs to identify a national leader who will take the values and clear national development visions forward.

 

Keywords: government stability, rule of law   Daily News /pages 1, 2/


Bolstering partnership in minerals, energy and infrastructure development

Summary: The Prime Minister of Mongolia met with China's Ambassador to Mongolia Xing Haiming. The Prime Minister emphasized the need to support the full implementation of the strategic partnership between the two countries and the importance of expediting bilateral initiatives. In particular, the signing of the MOU on boosting investments and industrial partnerships is pending and functions of the bilateral Council on Minerals, Energy and Infrastructure development shall be fast-tracked. 

Keywords: bilateral cooperation, foreign policy   Today /page 2/


ECONOMY

The Stand-By is not solution, it is the beginning of a crisis

Summary: Lately, there have been discussions regarding the need for Mongolia to implement the IMF Stand-By agreement. There are pros and cons to this program and there will be a lot of to debate regarding which political party is to blame for the current economic situation. Therefore, the decision to accept the IMF agreement will be a political rather than economic one. Mongolia has engaged in IMF programs 5 times since 1991, and the most recent program was implemented in 2009 during the economic crisis. It is estimated that the initial financing from the IMF Stand-By program would equal 300-400 million USD. The financing will save the Government time and provide immediate relief, but it will not resolve the systemic challenges of Mongolia, as the root causes of the economic recession are complex. 

 

Keywords: economy, fiscal policy      Century News /pages 1,3/


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ONLINE STORIES

Wrong decisions of Prime Minister Erdenebat  

Summary: Prime Minister Erdenebat has repeatedly stated that the government will undertake a special economic stabilization program. While it is not clear on the framework of the initiative, some speculate that it could be the IMF Stand-By program. In reality, the Prime Minister has made decisions to promote the social welfare promises made during the election. He ordered Cabinet members to explore options to decrease corporate income taxes for entities with annual sales below 1.5 billion MNT by up to 1%. Meanwhile, the country is facing a severe fiscal deficit and is struggling to collect revenues. Therefore, the question is if it is the right time to lower taxes. Additionally, in an attempt to fulfill another election promise, the Prime Minister asked the Cabinet members to identify financing to continue the social transfer program known as Child Money.

Keywords: economy, fiscal stability    http://www.ikon.mn/n/suq


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