Economic policies of Government Action Plan 2016-2020

Newly formed Government, after the 7th Parliamentary election, has developed National Action Plan of Government of Mongolia to be implemented in 2016-2020 in accordance with the the Mongolian Sustainable Development strategy until 2030, MPP action plan, civil society organizations, international contracts and public opinion. 

The following plan included 90 percent of Mongolian People`s Party action plan which won the 2016 Parliamentary Election and it will be implemented after approved by the State Great Khural. 

ONE.SPECIAL POLICY TO OVERCOME ECONOMIC DOWNTURN

We will follow policy to 

1. Develop program to overcome and stable economic downturn in a short period
2. Ensure macro economic stability and increase foreign investment
3. Lower budget deficit by strengthening budget discipline, cutting inefficient cost, and saving budget 
4. Create openness and transparency expenditure of local development funds 
5. Deal with debt distress and support sustainable livelihood of citizens while increasing income 
6. Pay service fees of citizens and entities served for state 
7. Reduce debt burden facing to the state budget by easing loan condition and delaying principal payments 
8. Review loan expenditure granted in scope of "Price stabilization "program and increase efficiency 
9. Conclude bond and loan expenditure granted by Development bank and review project and programs and pay back overdue loans used for other purposes
10. Lower income tax rates of entities with annual income of MNT 1.5 billion or less to 1 percent in scope of policy to support national production 
11. Impose corporate and personal income tax rates depending on level of income  
12. Create legal environment to coordinate personal income tax relief with minimum wage 
13. Support national investors by creating legal environment to relief income tax 
14. Support businesses by extending payment period of tax act interest, penalties and opening their closed accounts 
15. Create opportunity for entities and individuals registered in list of bad borrowers to pay back loan and improve credit history 
16. Grant long-term soft loan to light, small and medium businesses with 5 or more years experience and created permanent jobs
17. Lower state service fee and payment 
18. Reduce the number of licenses by three times, extend the period of validity and eliminate duplicate inspections and bureaucracy
19. Cooperate closely with international and local bank and financial institutions to overcome economic downturn, reduce vulnerability and minimize risk
20. Re-organize consultative meetings with partner countries, international bank and financial institutions
21. Increase economic indicators and credit rating of Mongolia and restore investors confidence 
22. Implement "Made in Mongolia" program and improve competitiveness of industry, trade and service 
23. Intensify operations of Erdenes Mongol JSC and Oyu Tolgoi project and mobilize Tavantolgoi and other strategically significant deposits

TWO. SUSTAINABLE ECONOMIC GROWTH POLICY

1. Increase the national income and list back in upper-middle-income country 
2. Make industrialization map and develop heavy industrial development program
3. Support entities exporting 50 percent of national products except mining products with tax policy 
4. Increase the value of 1072 shares owned by every citizen of Mongolia 
5. Create opportunity for each citizen to access efficiency of major companies such as Oyu Tolgoi, Tavantolgoi, Erdenet 
6. Extend the loan period of major projects and lower interest rate 
7. Develop stock market and banks which is citizen-friendly and economically beneficial 
8. Update Law on Standardization and Metrology in accordance with international principles and implement "National quality" program 
9. Increase the competitiveness of products in the market and 
10. Make appropriate mechanisms to recognize and use the results of standardization and conformity assessment in order to reduce technical barriers of trading and increase the competitiveness of products
11. Maintain steam, water, heat and electricity tariffs used in production and follow policy to gradually reduce tariffs 
12. Create integrated delivery system to transport, prepare and process animal raw materials
13. Intensify operation of free zones and support domestic investment 
14. Support fair competition and improve legal environment to protect consumer right
15. Support domestic production through customs and taxation policy
16. Introduce single-window system in export 
17. Grant "Trust loans" to small and medium-sized enterprises, family farms and micro-entrepreneurs
18. Implement "Regional discount" policy to support businesses in locals and rural areas 
19. Reduce oil price in accordance with world market and lower price pressure