New electronic platform to give Georgian citizens ability to see budget priorities, suggest opinions starting January 2020

In order to increase fiscal transparency Georgia is creating an electronic platform where Georgian citizens can see the priorities of budgetary spending in detail, and express their opinions and suggestions about the budget. 

The platform is being created with the support of USAID, and was announced yesterday by Minister of Finance Ivane Matchavariani during the presentation of the ministry’s annual report. 

He noted that Georgia is the fifth country in the world by the Open Budget Index (2017) after New Zealand, South Africa, Norway and Sweden; this indicator assesses the transparency of the budgetary process and the engagement of the public in it.

Georgia is in third place based on World Bank’s index in total tax and contribution rate after Brunei Darussalam and Vanuatu. Photo: Ministry of Finance. 

Matchavariani also spoke about the recently implemented Public Investment Management (PIM) method, which details a preliminary assessment of all major projects implemented by the Georgian government, including feasibility assessment (assessment of economic and social impact) and follow-up monitoring.

In the framework of the PIM methodology, 14 important projects have been assessed and presented for the 2020 state budget. He added that for 2021, the Georgian government plans to assess a minimum 50 per cent of projects implemented by government by PIM methodology and then present for the budget,” said Matchavariani.

Current expenses are decreased from 25 per cent to 21 per cent which created government savings. Photo: Ministry of Finance.

Finance Minister Matchavariani noted that Georgia is in third place based on World Bank’s index in total tax and contribution rate after Brunei Darussalam and Vanuatu. But he added that as the burden of a tax is not heavy, the burden should be distributed fairly and shadow economy should be decreased.

98 per cent of taxpayers have paid their taxes in a timely manner in 2019, while this indicator was 95 per cent last year,” said Matchavariani.

Minister of Finance Matchavariani noted that the budget deficit is decreased and is about 2.5-2.7 per cent of gross domestic product. He added that current expenses are decreased from 25 per cent to 21 per cent which created government savings that are being used for infrastructural projects and the implementation of different reforms.

Georgian external debt is around 60 per cent of the gross domestic product. Photo: Ministry of Finance.

Matchavariani also spoke about the governance indicators of the World Bank.

Georgia is better than East European countries in control of corruption, regulatory quality and rule of law”, Matchavariani said, but added that Georgia is behind this countries in political stability.

Georgian Finance Minister Matchavariani noted that Georgia is spending the least amount of money in bureaucracy in the world after Singapore by the assessment of the World Bank which means that these effective governance indicators is a good result taking into account the quantity of money spending on this.

Ivane Matchavariani also spoke about external debt and said that Georgian external debt is around 60 per cent of the gross domestic product which is a good result. But he added that most of the debt is taken in foreign currency which increases currency risks.