Impact of the mining sector on the economy and budget revenue management (Anglais)

Over the last decade, the Mongolian economy inevitably faced numerous booms and busts. The economic indicators revealed that the booms and busts were caused by the changes in the mining sector with changed in mineral commodity prices and the investment...  Voir la suite Over the last decade, the Mongolian economy inevitably faced numerous booms and busts. The economic indicators revealed that the booms and busts were caused by the changes in the mining sector with changed in mineral commodity prices and the investment being particularly salient. Over the last decade, the Mongolian economy inevitably faced numerous booms and busts. The mining boom brought with it economic fragility, notably vulnerability to commodity price slumps and an adverse shock to Foreign Direct Investment (FDI). Mongolia started to experience economic slowdown following the boom in 2012, when the mineral prices fell significantly on the world market. The public foreign debt grew substantially in last few years as a result of budget expenditure increases and falling revenues. This research aimed to assess the impact of the Fiscal Stability Law (FSL) on the economy. The fiscal and monetary policies were pro-cyclical in Mongolia, which in turn exacerbated the fluctuations in the economy and in the government budget position. The FSL plays an important role in restraining fluctuations in the government budget and thereby reducing uncertainty. The research results show that fiscal discipline is paramount as the economy is expected to perform in a relatively similar fashion in both scenarios unless the Government of Mongolia (GoM) increases its spending and in turn, its debt, unnecessarily. When the GoM adheres to the FSL, on the other hand, its benefits materialize.  Réduire