Parliament approved the State Budget 2014

The State Budget 2014 was approved by the Parliament.

The total budget of Georgia in 2014 will be 9.8 billion GEl. The GDP growth rate is forecasted to be 5.0% and GDP deflator at 3.5% with a nominal GDP 29.3 billion GEL. The budget tax revenue in 2014 is estimated at 7.23 billion GEL. Return of untaxed income of around 180-200 million GEL is included in calculations of the tax revenues. So, people with low wages will be receiving an income tax return.

As for the finance sources, the state budget will be financed:

• Tax revenues 6 820 million GEL
• Grants 144 million GEL
• Other incomes 355 million GEL
• State property receivables 80 million GEL
• Return of the loans given out during the last year 70 million GEL
• World Bank credit to support the budget 136 million GEL
• International finance institutions credits to support the budget 300 million GEL
• Investment grants allocated to finance the infrastructure projects 600 million GEL
• Maturity of various domestic governmental securities 400 million GEL
• Available balance in the state treasury - 175 million GEL

The total volume of state securities released will be 600 million GEL from which 400 million GEL will be spent on the state budget expenditures and among them, payment of the state debt. 1,685 million GEL will be spent during 2013-2014 on the services of the debt from IMF in 2009 and Euro obligations in 2008. The remaining 200 million GEL will be directed to ensure the long-term economic resources.

In particular, the National Bank of Georgia and commercial banks will elaborate the rule according to which the amount will be placed as deposits in the same banks which purchase those securities. The Finance Minister hopes that commercial banks will manage to give long-term credits what contribute to stimulate the economy.

The Ministry of Health, Education and Science and Agriculture will become the biggest debt for next years budget.

"I hope that the Finance Minister will have the same smiling face during the next year as he has right now, - Usupashvili said after he congratulated the government on passing the 2014 budget.