What’s hampering budget fulfillment?
Ministry of Development lagging behind

Over-optimistic and incorrect planning of the budget, as well as delays in the implementation of projects by construction companies and problems related to the resettlement process are the main reasons behind budget unfulfillment, said  First Deputy Minister of Regional Development and Infrastructure and Chairman of Roads Department Irakli Karseladze in an interview with the Interpressnews.

More than 700 million GEL from the nine-month plan of the state budget for 2018 has not been spent so far and Georgia’s Ministry of Infrastructure and the Regional Development has the largest lag.

In the nine month period of time the Ministry of Infrastructure and Regional Development had to spend more than one billion of GEL but spent only 806 million GEL.

Karseladze said that the nine-month budget was fulfilled by 80%.

Karseladze explained that the challenges were related to the Samtredia-Grigoleti road project, to the Zemo Osiauri-Chumateleti road project, where the contractor company launched construction works with a delay; also the rehabilitation of Jhinvali-Barisakho section of road where also the contractor company faces challenges in implementing the project.

Taking into consideration the fact that it was obvious that the 2018 budget fulfilment would be complicated for the ministry we have reviewed the priorities and started implementing new projects along with the current ones in order to ensure effective utilisation of the funds available in the Ministry's assignments”, said Karseladze.

The Roads Department has signed about 30 agreements and announced about 70 tenders worth 436 million GEL… Performance of nine-months of the Roads Department is 503.8 million GEL instead of the planned 654.5 million GEL. 150.7 million GEL is unutilised of which 135.4 million is unutilised due to partly implementation of Samtredia-Grigoleti, Zemo-Osiauri Chumatelei and other projects”, he added.

Karseladze said that the ministry is making efforts in order to avoid such challenges in the coming years.