PRELIMINARY RESULT OF 2010: GGB HAS PROFIT

Ulaanbaatar, Mongolia, /MONTSAME/ As of the preliminary result of 2010, total revenue and grants of the General Government Budget (GGB) amounted to MNT 3,078.4 billion and total expenditure and net lending amounted to MNT 3,076.3 billion, representing a profit of MNT 2.2 billion in the GGB overall balance.
GGB's current revenue has amounted to MNT 3,035.9 billion and current expenditure reached MNT 2,271.2 billion as of the preliminary result of 2010. Thus, the budget current balance was in profit of MNT 764.7 billion. Tax revenue increased by MNT 1,053.0 billion or 65.0 per cent in 2010 against the previous year. This increase was mainly due to increase of MNT 236.6 billion or 2.3 times in windfall tax on some products, and of MNT 185.2 billion or 90.2 per cent in corporate income tax and of MNT 251.3 billion or 77.1 per cent in value added tax, and MNT 101.8 billion or 61.0 per cent in excise tax.
Compared to the previous year, non-tax revenue increased by MNT 10.2 billion or 2.9 per cent, out of which revenues from oil petroleum up by MNT 29.1 billion or 2.1 times and other revenues up by MNT 27.8 billion or 2.4 times, revenues from navigation fee up by MNT 9.4 billion or 42.4 per cent, although the revenues from dividends decreased by MNT 53.4 billion or 49.2 per cent.
As of the preliminary results of 2010, total expenditure and net lending of the GGB increased MNT 739.6 billion or 31.7 per cent to MNT 3,076.3 billion against the previous year. This was mainly due to increase of MNT 247.1 billion or 31.3 per cent in subsidies and transfers, MNT 74.6 billion or 13.0 per cent in wages and salaries, MNT 149.0 billion or 37.8 per cent in purchase of other goods and services, MNT 104.1 billion or 22.6 per cent in capital expenditure.
Spending of MNT 564.7 billion on capital expenditure as of the preliminary results of 2010 was higher by MNT 104.1 billion or 22.6 per cent against the previous year. The increase in capital expenditure was due to an increase of MNT 117.6 billion or 27.1 per cent in capital expenditure of domestic sources, although the foreign financed capital expenditure decreased by MNT 13.5 billion or 50.5 per cent.
B.Khuder