EQUILIBRATED BALANCE SHOWS A DEFICIT OF MNT 276.0 BILLION

According to the preliminary results in the first quarter of 2020, the total revenue of the general Government budget amounted to MNT 2.2 trillion, and MNT 2.1 trillion of which accounted for equilibrated revenue. Total equilibrated revenue was sharing 93.2% of the general government budget revenue.

Total expenditure and net lending amounted to MNT 2.3 trillion, resulting in a deficit of MNT 276.0 billion in the equilibrated balance. However, in March 2020, total revenue and grants of General Government Budget reached MNT 760.2 billion, increased by MNT 63.5 billion or 9.1% and total expenditure and net lending amounted to MNT 860.5 billion, increased by MNT 12.6 billion or 1.1% compared to the previous month. General Government budget revenue was comprised of 86.0% of tax revenue, 7.2% of non-tax revenue, 6.5% of the future heritage fund and 0.3% of the stabilization fund.

In the first quarter of 2020, tax revenue reached MNT 1.9 trillion, decreased by MNT 58.9 billion or 3.0% compared to the same period of the previous year. This growth was mainly due to decreases of MNT63.9 billion or 29.9% in other taxes revenue and MNT 33.9 billion or 15.9% in excise taxes revenue, while there was an increase by MNT 20.5 billion or 4.7% in social security revenue, MNT 11.2 billion or 2.9% in value-added taxes and MNT 4.5 billion or 16.3% in property tax.

In the first quarter 2020, social security contributions revenue increased by 1.8 points, income tax by 1.3 points and value-added tax revenue by 1.2 points, while other taxes revenue decreased by 2.8 points and excise taxes revenue by 1.4 points and foreign activity revenues by 0.1 points as compared to the same period of the previous year.

In the first quarter of 2020, general government budget expenditure and net lending increased by MNT 380.7 billion or 19.3% compared to the same period of the previous year, totaling up to MNT 2.3 trillion by preliminary results. It was primarily affected by an increase of MNT 332.1 billion or 18.4% in current expenditure and MNT 73.0 billion or 43.4% in capital expenditure.

Source: