MP D.Demberel made a statement on Government debt today. He noted that our country is standing behind two choices whether to lay a debt distress on public or the Government and the State Great Hural to repay the debt by generating revenues with efficient approaches.
MP D.Demberel stated that according to the 2016 budget and 2017 budget projections, authorities have chosen to overcharge debt distress to public and he explained it by data.
As of today, total foreign debt has reached to USD 21.7 billion, nearly doubled from USD 11.6 billion recorded in 2012.
The Government debt is the worth of MNT 13.7 trillion continuously rising at rapid speed since 2012. Therefore, reducing the government debt has become the facing issue for the country, reported by MP D.Demberel.
Moreover, he estimated that the debt amount is expected to increase enormously during 2016-2018. For instance, debt of Government and private entities will reach
- USD 900 million in 2016
- USD 2 billion in 2017
- USD 1.3 billion in 2018.
As we consider above amount with current exchange, it is equal to MNT 8 trillion. Moreover, MNT 962 billion to be paid for loan service, equivalent to 37 percent of budget. In other words, it has been building major burdens for the 2016 budget.
MP D.Demberel said "We are likely to pay such a large amount of debt via the budget management. The Government has stated not to add salaries and pensions in 2016 because of the debt payment issues. We have three choices left.
- First, the Government will work efficiently by increasing the investment and earn more.
- Second, if the government fails to work sufficiently, the public is forced to deal with the debt in the future.
- Third, we will pay for the debt by depositing our mineral resources.
According to the 2016 budget and 2017 budget adjustment, the Government is to support the second choice and he emphasized that wage and salary cut has been proposed.
MP D.Demberel made a statement on Government debt today. He noted that our country is standing behind two choices whether to lay a debt distress on public or the Government and the State Great Hural to repay the debt by generating revenues with efficient approaches.
MP D.Demberel stated that according to the 2016 budget and 2017 budget projections, authorities have chosen to overcharge debt distress to public and he explained it by data.
As of today, total foreign debt has reached to USD 21.7 billion, nearly doubled from USD 11.6 billion recorded in 2012.
The Government debt is the worth of MNT 13.7 trillion continuously rising at rapid speed since 2012. Therefore, reducing the government debt has become the facing issue for the country, reported by MP D.Demberel.
Moreover, he estimated that the debt amount is expected to increase enormously during 2016-2018. For instance, debt of Government and private entities will reach
- USD 900 million in 2016
- USD 2 billion in 2017
- USD 1.3 billion in 2018.
As we consider above amount with current exchange, it is equal to MNT 8 trillion. Moreover, MNT 962 billion to be paid for loan service, equivalent to 37 percent of budget. In other words, it has been building major burdens for the 2016 budget.
MP D.Demberel said "We are likely to pay such a large amount of debt via the budget management. The Government has stated not to add salaries and pensions in 2016 because of the debt payment issues. We have three choices left.
- First, the Government will work efficiently by increasing the investment and earn more.
- Second, if the government fails to work sufficiently, the public is forced to deal with the debt in the future.
- Third, we will pay for the debt by depositing our mineral resources.
According to the 2016 budget and 2017 budget adjustment, the Government is to support the second choice and he emphasized that wage and salary cut has been proposed.