Seems like the Government for Solution is starting to work under slogan “Reduction and Holding Back”, as the Prime Minister delivered his speech at the State Great Khural last Friday. Here are the main points of his speech. Pretty impressive and seems to be supported by many, especially younger entrepreneurs at the social media, as his speech was shared many times:
- No new buildings to be financed from the state budget in 2015, but those construction projects that are on hold, not crucially important or the ones that will be beneficial at private hands, are to be auctioned and transferred to the private sector.
- Monthly MNT 20,000 child support money to be directed only to those in need, probably new criteria to be applied for the eligibility for the child support money.
- Students are next in target for the PM, as now they really need to study hard to get student support from state in the face of monthly MNT 70,000, action that was long due, as the State is now to support only students with excellent grades.
- Previously one time State support for retirement was differing by sectors and ranged at 12-36 months’ worth, now the State really seems to be shifting to the saving the funds as this one retirement support to be equal of 12 months’ worth support, no matter which sector it is.
- Tax will be inevitable for the herders from now. Seems fair, as herders were tax exempt for many years and on top of that were always subsidized, for cashmere, wool and etc. and there are over 60 million cattle. PM emphasized that this tax is to stay at local government and to be directed to support herders back.
- Budget tightening will now affect the uniforms of the Special Inspection Agency, Social Welfare, Taxation Authority, State Registration Office and social workers. PM left the police, customs, military and emergency services uniforms under state budget.
- PM suggested merging of the several entities such as Labour Office, Labour Research Institute and Employment Service agencies under National Employment Center.
- Next big step will be merging of the many research institutes and linking and merging them with the university research centers. For instance, Light Industry Research and Development Institute, Textile Institute, Heating Technical and Ecology Institute and Forestry Institutes to be merged under Mongolian University of Science and Technology (MUST).
- Three buildings under Government use will be transformed into Children Hospitals. Big move, never seen before, towards the health of population.
- PM targeting to cut the spending on the drivers, sanitation, electricians and plumbers services shifting them to outsource from the private servicing entities. The first to be hit under this wave will be State Entity in charge of utilities and services of the Government house and buildings and Government Vehicle unit, starting the January 2015.
- Kindergarten subsidies are truly not enough to keep the normal operations, therefore lunch money will be partly under parents charge as well.
- Distinguished Mother Order to be awarded only to mothers with children aged 0-18.
- There is possibility to cut around 10,000 employees at the state entities excluding teachers and medical workers. The question is as PM suggests, whether to cut those or proceed another year without salary raise at the state entities. This is to be discussed in very near future.
PM is sure to bring into live the true meaning of the budget cuts and he is definitely serious with it. He is not trying to go the populist route as previous Governments did. Although there is not much time left until the next Parliament elections, above measures do sound possible to implement.ties. This is to be discussed in very near future. r to cut those or proceed another year without sala
Seems like the Government for Solution is starting to work under slogan “Reduction and Holding Back”, as the Prime Minister delivered his speech at the State Great Khural last Friday. Here are the main points of his speech. Pretty impressive and seems to be supported by many, especially younger entrepreneurs at the social media, as his speech was shared many times:
- No new buildings to be financed from the state budget in 2015, but those construction projects that are on hold, not crucially important or the ones that will be beneficial at private hands, are to be auctioned and transferred to the private sector.
- Monthly MNT 20,000 child support money to be directed only to those in need, probably new criteria to be applied for the eligibility for the child support money.
- Students are next in target for the PM, as now they really need to study hard to get student support from state in the face of monthly MNT 70,000, action that was long due, as the State is now to support only students with excellent grades.
- Previously one time State support for retirement was differing by sectors and ranged at 12-36 months’ worth, now the State really seems to be shifting to the saving the funds as this one retirement support to be equal of 12 months’ worth support, no matter which sector it is.
- Tax will be inevitable for the herders from now. Seems fair, as herders were tax exempt for many years and on top of that were always subsidized, for cashmere, wool and etc. and there are over 60 million cattle. PM emphasized that this tax is to stay at local government and to be directed to support herders back.
- Budget tightening will now affect the uniforms of the Special Inspection Agency, Social Welfare, Taxation Authority, State Registration Office and social workers. PM left the police, customs, military and emergency services uniforms under state budget.
- PM suggested merging of the several entities such as Labour Office, Labour Research Institute and Employment Service agencies under National Employment Center.
- Next big step will be merging of the many research institutes and linking and merging them with the university research centers. For instance, Light Industry Research and Development Institute, Textile Institute, Heating Technical and Ecology Institute and Forestry Institutes to be merged under Mongolian University of Science and Technology (MUST).
- Three buildings under Government use will be transformed into Children Hospitals. Big move, never seen before, towards the health of population.
- PM targeting to cut the spending on the drivers, sanitation, electricians and plumbers services shifting them to outsource from the private servicing entities. The first to be hit under this wave will be State Entity in charge of utilities and services of the Government house and buildings and Government Vehicle unit, starting the January 2015.
- Kindergarten subsidies are truly not enough to keep the normal operations, therefore lunch money will be partly under parents charge as well.
- Distinguished Mother Order to be awarded only to mothers with children aged 0-18.
- There is possibility to cut around 10,000 employees at the state entities excluding teachers and medical workers. The question is as PM suggests, whether to cut those or proceed another year without salary raise at the state entities. This is to be discussed in very near future.
PM is sure to bring into live the true meaning of the budget cuts and he is definitely serious with it. He is not trying to go the populist route as previous Governments did. Although there is not much time left until the next Parliament elections, above measures do sound possible to implement.ties. This is to be discussed in very near future. r to cut those or proceed another year without sala