Should be Resolved Jointly MPP reviews their work completed in the fall session
March 01, 015
The Mongolian People’s Party (MPP) faction in the Parliament called a press conference to report their work completed and carried out during the fall session of the Parliament. During the fall session, which closed on February 18, the MPP held 42 meetings and appointed 17 working groups.
The New Government for Changes was dismissed last year following an MPP-led movement. MPP Chairman S.Byambatsogt emphasized that the dismissal of the government was called for because the country had faced a recession for the last two years and people’s lives had deteriorated because of the inaccurate policy of the governmental authorities and their interventions.
The MPP pointed out that the economic growth of Mongolia was at 14.5 percent when the MPP handed over the government after the 2012 parliamentary elections, and two years later it had fallen to 7.8 percent. The foreign currency reserve was 2.6 billion USD, but it has since fallen to 1.3 billion USD. The USD exchange rate was 1,338 MNT in 2012, but it has since reached 1,980 MNT. More statistics were reported in the table below:
| | Economic indicators | Measurement unit | July 2012 | December 2014 | Comparison |
| 1 | Economic growth | percent | 14.5 | 7.8 | Decreased by half |
| 2 | Foreign currency reserve | billion USD | 2.6 | 1.3 | Decreased by half |
| 3 | Foreign currency rate (USD) | tugrik | 1,338 | 1,888 | Increased by 40 percent |
| 4 | Inflation rate | percent | 9.7 | 11.0 | Increased by 1.3 points |
| 5 | State debt | billion MNT | 4864,7 | 14218,9 | Tripled |
| 6 | Overdue loans of the banking system | billion MNT | 51.8 | 269.5 | Increased by 5.2 times |
| 7 | Non-performing loans of the banking system | billion MNT | 307.80 | 625.7 | Doubled |
| 8 | Direct foreign investment | billion MNT | 4,620.1 | 567.9 | Reduced by 8 times |
| 9 | Service payments of public debt | billion MNT | 37.0 | 500.4 | Increased by 13.5 times |
| 10 | Competitiveness of Mongolia | ranking | 93 | 107 | Fell 14 places |
Source: Finance Ministry, Mongolbank, National Statistics Office
The MPP believes that if the government was allowed to continue its term, the country’s economy would further deteriorate. During the formation of the new government, Prime Minister Ch.Saikhanbileg requested that the MPP cooperate in the government. The MPP accepted the request, setting the following conditions: that issues such as neutralizing and stabilizing the economic recession, saving jobs, increasing salaries and pensions, bringing vested projects into economic circulation, cutting off luxury and excessive spending of high ranking state servants, having a joint budget, and implementing a program to overcome the economic recession should be resolved jointly, as well as making amendments to the constitution in 2015 on developing parliamentary governance after discussing it with the MPP faction.
JOINT STATE BUDGET FORMED
Over the past two years the Chinggis and Samurai bonds have not been included in the state budget, and critics say that control of their spending has not been transparent. This issue was discussed during the approval of 2015 state budget and budgets were joined accordingly. The Standing Committee on the Economy appointed a working group to examine bond spending and a review was conducted by Development Bank. Upon the request to adhere to an expense saving policy, some offices of the government were liquidated. Budget amendments were approved, and the MPP held the position that state taxes should not be increased, as taxpayers are already experiencing financial pressures.
SOCIAL WELFARE ISSUES ADDRESSED
In recent years, the MPP has focused on social welfare issues. Some members of the MPP have led an initiative to reduce the interest rates of pension loans. However, the initiative did not get support from the Parliament.
The proposal called for reducing pension loan interest rates from 18 percent to 9 percent. Even though it could not get support, the MPs will resubmit the initiative in the next session of the Parliament.
The MPP faction also delivered a demand to increase salaries, pensions and welfare amounts by up to 30 percent. The decision was made to increase salaries by a certain percent in the first phase of increases. State policy to reduce unemployment will be developed with the Labor Minister and will be brought up for discussion in the Spring Session, the MPP faction’s Deputy Chairman MP N.Nomtoibayar stated.
The government submitted a proposal to cut down on the amount of state allowances granted for newborn children, pregnant women, mothers with infants, and mothers who have given birth to four children or more. However, the state allowances remained unchanged, as the MPP argued that it was not right to cut benefits as the country’s economy has deteriorated.