The 30% rise in salaries and pensions to take effect on October 30 will benefit 148,223 government employees, but the rest of the country is worried about the effect this may have on prices. Parliament has included MNT78.2 billion this year on this account in the budget. The money is expected to come from the next installment of the Oyu Tolgoi advance payment. The cost of the increase will amount to MNT300 billion in a full year.
The budget also has to provide for distribution of the motherland allowance. If a family has five members, and one of them is a state employee, it will receive MNT50,000 per month from the Human Development Fund and the 30 percent rise in one person’s salary. The average salary now is MNT300,000, so the average rise will be MNT90,000. This means the income of the family will be up by MNT120,000. That is a tidy sum for an individual family, but it is anybody’s guess how much of this will be eaten up by the anticipated price rise. One can only hope that the nation in general does not end up suffering because government employees had to be satisfied.
Source: English.News.mn
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