State budget 2019 submitted to parliament
What are budget priorities?

Georgian Finance Minister Ivane Matchavariani has presented the draft State Budget 2019 to the Parliament of Georgia which includes the main data and directions of the country for 2019-2022.

The revised version of the 2019 State Budget which was presented to the Parliament yesterday is organised into four main categories:

• Human capital – increased state investments to human capital development, namely: healthcare, education, ecology, as well as agriculture that will facilitate the human capital development concept.
• Physical capital – both municipal and other types of infrastructure, irrigation systems etc.
• Financial capital – it outlines the state’s role in development of petty and average enterprises.
• Security – includes high protection standard and rule of law.

Matchavariani stated that in each of the four categories and in general, the main objective of the budget and various reforms in Georgia is the welfare of the local population.

The budget is planned with a 4.5% economic growth forecast, and if the actual index is higher, the budget will be amended in 2019, said Matchavariani.

The business friendly environment is evidenced by increased direct foreign investments: $1.9 billion in investments in 2018, with$1.8 billion forecasted for 2019. Reduction of the ongoing expenditures simultaneously increases funding for infrastructural projects: more than 3.7 billion GEL is envisaged for capital projects in 2019.

In 2017-2022 8% of the average GDP will be directed to capital costs and in sum, the projects will cover more than 25 billion GEL”, said Matchavariani.

The budget deficit has also been  reduced to 2.6% and will be maintained at 2.5% in the upcoming years.

Incomes to the budget 2019 are defined with 12.96 billion GEL.

The municipalities will be given extra funding of 100 million GEL.

State budget expenditures will increase by 538 million GEL, constituting a total of 13 billion GEL. 

More than 1.8 billion GEL is envisaged for human resource development.

Financing for general education is increased to 37 million GEL; vocational education – 49 million GEL, we also envisage increase of the salaries of the pedagogues with 30%”, said Matchavariani.

Educational program financing is constantly increasing and in 2019 will constitute 1,215,000 GEL. 

2.9 billion GEL will be directed to social programs, including funding for pensions, which will increase by 225 million GEL. The budget also provides for a new program aimed at reducing child poverty, which designates a 50 GEL allowance per child for families holding up to 100,000 rating points.

More than 1.04 million GEL will be spent on healthcare programs. The budget also provides an increase of 61 million GEL in funding for the Agriculture Ministry, which constitutes a total of 332.3 million GEL.

1.4 billion GEL will be spent on road infrastructure, including funding for the new East-West and North-South highways, as well as tourist routes, all of which are planned for 2018-2024.

Members of parliament will reconvene for consideration of the draft today.