Government spending suggested moderating

Odonchimeg 2016-05-12 08:05

Economy

Government spending suggested moderating.

Government spending suggested moderating. Mongolia’s budget deficit is widening rapidly due to a large revenue shortfall and rising expenditures. The latest World Bank’s Mongolia Economic Brief said the budget deficit in the first three months reached two-thirds of the annual deficit target. Budget revenue collections fell by 11 percent, compared with the same period last year, because of falling mining export earnings, and sluggish economic activity. Meanwhile, capital spending nearly doubled in the first three months of this year, compared with the same period last year and overall expenditures rose by 25 percent. The report says Mongolia’s recent external borrowing helps ease the pressure on the balance of payments, and reduce domestic financing needs.