On the other hand, the total expenditure and net lending were MNT 7.4 trillion in the first seven months of 2020, resulting in a deficit of MNT 2.5 trillion in the equilibrated balance. In July 2020, the total revenue and grants of general government budget were MNT 902.8 billion, increased by MNT 108.1 billion or 13.6%, while the total expenditure and net lending were MNT 1.1 trillion, decreased by MNT 308.5 billion or 22.4%, compared to the previous month. In July 2020, the equilibrated balance of the general government budget was in deficit of 267.6 billion, decreased by MNT 351.6 billion or 56.8% compared to the previous month.

The General government budget revenue was comprised of 85.5% of tax revenue, 7.7% of non-tax revenue, 6.5% of the future heritage fund and 0.3% of the stabilization fund. In the first seven months of 2020, tax revenue reached MNT 4.5 trillion, decreased by MNT 989.6 billion or 18.0% compared to the same period of the previous year. This decrease was mainly due to MNT 358.1 billion or 23.6% decrease in income tax revenue, MNT 155.6 billion or 29.1% decrease in other taxes revenue, MNT 192.3 billion or 17.6% decrease in social security revenue, MNT 163.9 billion or 12.7% decrease in value-added tax revenue, MNT 71.8 billion or 14.2% decrease in excise tax revenue and MNT 39.2 billion or 8.9% decrease in foreign activity revenue.

In the first seven months of 2020, 25.8% of the total tax revenue was accumulated from income tax, 20.0% from social security contributions, 25.1% from value-added tax, 9.7% from excise taxes, 8.9% from foreign activities and 10.6% from other taxes.

In the first seven months of 2020, general government budget expenditure and net lending were MNT 7.3 trillion, increased by MNT 1.9 trillion or 33.9% compared to the same period of the previous year. This increase was primarily affected MNT 1.3 trillion or 29.5% increase in current expenditure and MNT 613.8 billion or 70.7% increase in capital expenditure. However, interest expenditure decreased by MNT 2.6 billion or 0.6% and net lending decreased by MNT 82.4 billion or 45.0%, compared to the same period of the previous year.

Source: National Statistics Office of Mongolia