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This week, the Mongolian parliament finally passed the 2017 budget. The vote was notable as it required the parliament to overrule a veto issued by the President. 85% of MPs voted in favor of the new budget.
President Battulga, commented that the budget did not properly allocate funds to financing improvements in job creation, and construction of schools.
Part of the budget will go to paying a one time bonus of MNT 516 thousand to those in the educational sector. The payment is in response to three months of protests by teachers around Mongolia as a result of stagnate wages.
While the Mongolian economy has struggled for several years, some see a light at the end of the tunnel. In this post (read the whole thing) by CRU’s John Johnson points to reductions in the state deficit, increases in foreign reserves (the Bank of Mongolia reports that Foreign exchange reserves now exceed 2 billion, and growth in the value of the Mongolian tugrug as signs that 2017 has been a turning point for Mongolia.
Increasing commodities prices worldwide, and generally positive growth in major countries around the world also suggest that the future may be brighter in Mongolia. Stronger commodities prices will make Mongolia’s mineral reserves more attractive for foreign investment. Adding to the positive trends, the government has stated that promoting foreign investment in the country remains a key priority.