Budget income shortfall has reached 18 percent as of the first five months and the World Bank sees that Mongolia needs to do adjustments.
'Another amendment of the 2015 budget seems necessary in the coming months to meet the FSL’s structural deficit ceiling (5% of GDP), through proper commitment controls of budgetary projects to avoid possible payment appears that have to be eventually paid by the budget later' states World Bank monthly economic brief.
Moreover, WB sees that budget adjustments will help the Government to review its expenditures on par with the revenue performance and ensure the implementation of the Budget Stability Law. WB advises to conduct the Government spending revision in a manner that it won't hit hard on the vulnerable group of the population.
The revenue shortfall largely came from foreign trade taxes (customs duties, VAT and excise tax on imported goods) and corporate tax that fell short of the budget plan by 25.6% and 12.8% respectively.
Budget income shortfall has reached 18 percent as of the first five months and the World Bank sees that Mongolia needs to do adjustments.
'Another amendment of the 2015 budget seems necessary in the coming months to meet the FSL’s structural deficit ceiling (5% of GDP), through proper commitment controls of budgetary projects to avoid possible payment appears that have to be eventually paid by the budget later' states World Bank monthly economic brief.
Moreover, WB sees that budget adjustments will help the Government to review its expenditures on par with the revenue performance and ensure the implementation of the Budget Stability Law. WB advises to conduct the Government spending revision in a manner that it won't hit hard on the vulnerable group of the population.
The revenue shortfall largely came from foreign trade taxes (customs duties, VAT and excise tax on imported goods) and corporate tax that fell short of the budget plan by 25.6% and 12.8% respectively.