Georgian parliament finalises 2020 state budget
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Forecasted economic growth decreased from 5 per cent to 4.5 per cent, while the budget deficit is forecasted to be 2.4 per cent of gross domestic product. photo: Ministry of Finance.
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The Georgian parliament has approved the state budget for 2020, with 83 votes in favour and one vote against earlier today.
In the latest version of the state budget for 2020, budget allocations were increased by 221 million GEL ($75.97 mln/€68.61mln) and is defined at 14.43 billion GEL ($4.96 bln/€4.48 bln).
Tax income in state budget is forecast at 10.47 billion GEL ($3.6 bln/€3.25 bln).
Forecasted economic growth decreased from 5 per cent to 4.5 per cent, while the budget deficit is forecasted to be 2.4 per cent of gross domestic product.
Inflation target defined by the National Bank of Georgia still remains at 3 per cent.
In 2020 1.9 billion GEL [$0.65 bln/€0.59 bln] will be spent on the educational sector,” said Georgian Finance Minister Ivane Matchavariani.
He noted that in the final version of the 2020 budget, the construction costs for vocational education institutions increased by 5 million GEL ($1.72 mln/€1.55 mln), costs for sports infrastructure increased by 5 million GEL.
Matchavariani also said that costs for education projects and programmes are increased by 15.2 million GEL ($5.23 mln/€4.72 mln) in total.
Pensions, disability payments and teachers’ salaries will be significantly increased in 2020, Georgian Prime Minister Giorgi Gakharia said at a special session of the government today. Gakharia said that the pension will increase by 20 GEL ($6.8/€6.2) for pensioners and for the first and second category of people with disabilities up to the age of 18.
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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.
Tax income to the state budget of 2019 amounted to 9.65 billion GEL ($3.33 bln/€3 bln) which is 6.8 million GEL ($2.35 mln/€2.11 mln) higher than planned, announced the Ministry of Finance earlier today.
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The Georgian government has presented a bill to parliament requesting 14.2 billion GEL ($4.77 bln/€4.37 bln) for the 2020 budge, including budgetary funds of 12.99 billion GEL ($4.37 bln/€4 bln), grants of 45 million GEL ($15.12 mln/€13.85 mln) and credits of 1.17 billion GEL ($0.39 bln/€0.36 bln).
The Tbilisi municipal budget is increased by 217 mln GEL ($75.8 mln/€70 mln) and amounts to 1.239 billion GEL ($430 mln/€400 mln) for 2020.
The draft of the state budget 2021 has been prepared and the first reading will be held in parliament from October 6 – 20.
Georgia has reached an agreement with the International Monetary Fund (IMF) on the parameters of the 2021 budget, announces Georgian Finance Minister Ivane Matchavariani.