Neil Sacker: Expenditure on social protection will not be lowered


2017-04-19 13:57 GMT+8

On April 18, President of the Confederation of Mongolian Trade Unions (CMTU) Kh.Amgalanbaatar organized a closed meeting with Resident Representative of the International Monetary Fund in Mongolia Neil Saker to discuss IMF's Extended Fund Facility program.

“The Government has breached some articles of the tripartite agreement on labor and social consensus and the 2017 budget amendments that were approved by the Parliament in compliance with the prerequisite of the EFF program. Therefore MTUC invited IMF representatives to express that increased taxes and fees within the program would cause much burden to workers and bring negative results to the society. We presented an official letter on it. We hope that the IMF’s Executive Board will consider and reflect our proposals and position in its final decision. The confederation is ready to cooperate with IMF, if they resolve the issue without causing a negative effect to social protection” said CMTU President Kh.Amgalanbaatar to journalists after the meeting.

“EFF program will give support to Mongolian economy to make it stable. The budget amendments included all measures and actions that had agreed between the Government and IMF. Today the budget deficit of Mongolia is very high. Therefore the Government had to get a significant amount of loans to recover the deficit. Debt service payment is increasing due to loan cost. First of all, budget expenditure should be cut in order to lower the deficit. However, I officially state that IMF has not touched on issues to reduce the number of state servants and lower social protection spending. We adhere to a principle, not to raise VAT, as it is the most widely used tax. We advised to impose higher rate of tax on people, who have high income, according to market principle. Moreover, Mongolia is in a situation that it has no other choice rather than raising retirement age. But it will be implemented not within one year, but gradually” said IMF Resident Representative Neil Saker.

GoGo Facebook Page

Go to top