Mongolia Economic Update: November, 2009 (Source World Bank website)
On November 27, 2009, Parliament approved the 2010 budget which projects a 5 percent of GDP deficit and two new laws were passed supporting social welfare reforms. However, Parliament had to increase the copper price assumption to achieve the deficit target. A significant increase in total social spending was also approved, including that under a newly created Human Development Fund (HDF) which is earmarked to pay pension and health insurance, housing, education and health services, and cash transfers to Mongolian citizens.
Since previous budget allocations of cash transfers to newlyweds, newborns, and child money programs, approved during the mining boom years, but have now been cut, analysts hope that creation of the Human Development Fund will pave the way for implementation of comprehensive social welfare reform with the view of moving towards a targeted new poverty benefit, using objective allocation criteria.
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On November 27, 2009, Parliament approved the 2010 budget which projects a 5 percent of GDP deficit and two new laws were passed supporting social welfare reforms. However, Parliament had to increase the copper price assumption to achieve the deficit target. A significant increase in total social spending was also approved, including that under a newly created Human Development Fund (HDF) which is earmarked to pay pension and health insurance, housing, education and health services, and cash transfers to Mongolian citizens.
Since previous budget allocations of cash transfers to newlyweds, newborns, and child money programs, approved during the mining boom years, but have now been cut, analysts hope that creation of the Human Development Fund will pave the way for implementation of comprehensive social welfare reform with the view of moving towards a targeted new poverty benefit, using objective allocation criteria.
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