Government needs balanced EXPENDITURES for sustainable growth, says ADB

Source: CPS International
The Mongolian government should review and re-direct government expenditure to critical areas such as transport, energy, water, education and health care to ensure sustainable economic growth, an expert of the Asian Development Bank (ADB) said.
The Mongolian government budget for 2012 had very substantial increase in public investment including infrastructure investment, which is very necessary to develop the country's natural resource sector to diversify the economy and to enhance general and inclusive growth, said Jan Hansen, a senior financial specialist of ADB resident mission in Mongolia.
Speaking at a launch ceremony of ADB's flagship annual economic publication Asian Development Outlook, Hansen emphasized that the government should ensure that the country's macroeconomic stability was preserved and inflation was kept at a low and acceptable level.
According to the ADB report, Mongolia's gross domestic product could grow by 15 percent in 2012 and 17.5 percent in 2013, driven by mining-related investment and output. Mongolia’s economy expanded by 17.3 percent in 2011. Inflation has increased by 15.3 percent in March 2012 and is expected to remain in the double digits over the next two years.