Five major projects to be moved forward

Oyundelger 2016-09-20 07:09

Mining

Five major projects to be moved forward this fall.

Five major projects to be moved forward this fall. Mongolia’s Deputy Minister of Finance briefed public on difficult fiscal situation. The 2016 budget had large shortfalls due to aggressive fiscal projections including ones on major projects such as Gatsuurt. Some of Government’s (GoM) proposed cuts and all tax hikes have been rejected by Parliament, however, the Ministry of Finance continues to plan tax system reform. The Government of Mongolia seeks to recover FDI by moving forward 5 major projects, specifically OT Underground project, TT project, TT power plant, TT railroad and Gatsuurt. Commenting on the fiscal situation the World Bank said that the revised revenue projections of the government seem largely realistic, based on conservative assumptions. Projected high budget deficit and rapidly rising government debt, however, urgently call for a comprehensive and strong fiscal consolidation plan, including spending adjustment based on priorities and revenue mobilization measures. The Bank also stated that there is a strong need for prioritizing expenditures to protect the vulnerable and improving public expenditure efficiency.