AKIPRESS.COM - President of Mongolia Khaltmaagiin Battulga vetoed the 2019 state budget law and the accompanying parliamentary resolutions on November 15.

President Battulga handed over an official letter to Speaker of the Parliament M.Enkhbold, requesting action in accordance with the corresponding laws and regulations.

The veto reads: “I have reviewed the Law on State Budget for 2019 which was adopted by the Parliament on November 2nd and forwarded to the Office of the President on November 12th. I have no choice, but to veto the 2019 budget and remind the Parliament of the necessity to look back on its budget policy, adopt a tight and efficient budget that upholds the national interest and discipline, and fix the following issues that violate the law and contradict the national development policy and vision.”

The letter highlights several issues in the 2019 State Budget Law, including high budget deficit which is MNT 1.9 trillion or 5.4 percent of GDP, “MP’s money” amounting to MNT 8 billion and budget allocation for the construction of facilities without blueprint, and estimation of the mining revenue at MNT 3 trillion which was concluded as unattainable by the National Audit Office. Furthermore, the President points out that the 2019 State Budget Law creates conditions for abrupt increase of public debt and that the projection of MNT 11.5 trillion budget expenditure is not compatible with the objective to maintain inflation within eight percent next year. In addition, President Battulga stresses that the lawmakers must create conditions for small businesses that are truly considered SMEs to be able to obtain loans with 3 percent annual interest from the SME Development Fund starting from January 1st, 2019.

President Battulga requests the Parliament to discuss and resolve the veto.