A/HRC/43/45/Add.4 of the Law. According to the Section 20.4 of the Law on Legislation the state central administrative body shall submit its draft law for the review by the state central administrative body responsible for legal affairs alongside the documents such as needs assessment, assessment on the implementation of effective laws which regulate the relations in matter and impact assessment as well as statement of future costs related to the draft law implementation. In case any draft law might have possible effect on the budget the draft law shall be submitted to the state central administrative body responsible for budget and finance for review. Furthermore, according to the Section 20.7, 20.8 of the Law on Legislation the Ministers for Justice and Home Affairs and for Finance would review the draft and decide if it would be granted permission to be discussed at Cabinet session and submitted consequently to the Parliament. In other words, it is not possible to authorize the consideration and submission of the draft laws which are not met the relevant requirements of the Law on Legislation of Mongolia. Therefore, the Ministry suggests the Independent expert to provide in his report proof for the assessment he has made and disclose the resources or ‘a number of interlocutors’ which back up his assessment. 2. As it was established by the article 6.1.4 of the Law on Fiscal Stability “the net present value of the government debt outstanding should not exceed 60 percent of the nominal GDP” and the article 19.3 of the same law also stipulated that this specific requirement should be complied at certain benchmarks. In complying the law, the Government sat the ratio of the government debt balance to GDP as 58.3 percent in the budget year of 2015, 88 percent in 2016, 85 percent in 2017, 75 percent in 2019 and 70 percent in 2020 as well as 60 percent in the year of 2021. In this connection, the Ministry advices the following corrections in the Independent Expert`s report: • Rephrase the paragraph 29 which says “Mongolia’s public debt went from 78.8% of the country GDP in 2016 to 58.9 in 2018” as “Mongolia’s Net Present Value of government debt to GDP ratio went from 78.8% in 2016 to 58.9% in 2018”. • Rephrase the paragraph 32 which says “Mongolia’s external outstanding debt went from 24.6 billion USD at the end of 2016 to 28.7 billion at the end of the 2018” as “Mongolia’s total external debt went from 24.6 billion USD at the end of 2016 to 28.7 billion at the end of 2018”. • Rephrase the paragraph 33 which says “In debt to GDP ratio term, the debt however decreased slightly by 20%...” as “In debt to GDP ratio term, the public external debt however decreased by 20%...”. • In paragraph 35, the Independent Expert stated that the liabilities of State-owned enterprises are not included in official public debt figures. According to the Article 4.1.8 of the Fiscal Stability Law, the State-owned enterprises liabilities are not recorded in the “government debt'', but according to the article 4.1.4 of the Debt Management Law, “total external debt” includes government and local government debts as well as Central Bank of Mongolia and includes all payment obligation of Mongolian enterprises to foreign enterprises. Thus, the Independent Expert is advised to rephrase the paragraph as follows: “...state-owned enterprises liabilities are not included in government debt but included in the total external debt figures... "; 3. In paragraph 37, the Independent Expert stated that the banks have set maximum limit on the interest rate they can charge to their borrowers. The recommendation is inaccurate and advised to be removed from the draft report. There is no legal regulation in Mongolia which sets the maximum interest rate for loans. Setting a maximum interest rate for loans may reduce the availability of loan services for small and medium-sized enterprises, low-income individuals and local borrowers. 4. On the paragraph 41 of the report, the Ministry of Finance is of the view that the comments and explanations are need to be taken from the relevant authorities; 5. According to the paragraph 71, the parliament of Mongolia has approved the revised draft law on Personal Income Tax on 22nd of March, 2019 and the revised law will be effective from 1st of January, 2020. 3