Georgian parliament approves anti-crisis budget for 2020
The anti-crisis budget reflects additional necessary expenditures of 3.4 billion GEL needed to combat the coronavirus and treat patients. Photo: Nino Alavidze/Agenda.ge.
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The Georgian parliament has approved the anti-crisis budget, which reflects additional necessary expenditures of 3.4 billion GEL needed to combat the coronavirus and treat patients, the Georgian Ministry of Finance announces.
The budget allocations according to the anti-crisis plan consisted of the following:
- 450 million GEL in compensation to citizens who lost their jobs due to the pandemic
- 75 million GEL for one-time assistance in the amount of 300 GEL
- 170 million GEL for utility bills
- 24 million GEL for the assistance of persons with disabilities
- 60 million GEL for healthcare infrastructure
- 285 million GEL will be spent to treat and prevent the coronavirus
- 250 million GEL for reduction of income tax for the purpose of maintaining jobs
- 45 million GEL to subsidise flights and for quarantine services
- 330 million GEL to finance the credit guarantee programme
- 70 million GEL to subsidise interest expanses of the hotels
- 45 million GEL to exempt touristic facilities from the property tax
- 20 million GEL to issue small grants
- 40 million GEL to support the construction sector
- 139 million GEL to support the agriculture sector
- 600 million GEL for VAT returns
- 600 million GEL to create long-term lari liquidity for commercial banks
What support can business expect?
The government of Georgia has presented an anti-crisis plan for Georgian businesses in order to ease the burden caused by the coronavirus crisis. The government responded to the demand of the hotels, restaurants, tourist agencies and tour operators in Georgia and decided to postpone payment of property and income tax by four months.
Georgian Prime Minister Giorgi Gakharia has presented the anti-crisis budget for 2020 at the Inter-Agency Coordination Council today in response to the before sending it to the Parliament of Georgia later today. "The reason and purpose of our meeting today is the anti-crisis budget for 2020. We all understand very well that the epidemic has pushed the country back economically. Today the budget will be presented to parliament and you are all here to discuss it and change our opinions", Gakharia said.
The Georgian government is working with experts from the University of Cambridge and the University of London as well as Deloitte analysts and local experts to create a post-crisis economic plan and decide what steps they should take in order to improve the Georgian economy after the coronavirus lockdown.
Georgia will spend 3.5 billion (about $1.10b/€1.02b) on its coronavirus anti-crisis plan, Georgian Prime Minister Giorgi Gakharia announced earlier today. "For now, the country will spend GEL 3.5 billion on managing the crisis, of which 1.035 billion GEL will be directed at social support of citizens, 2.11 billion GEL will be directed at the economy and entrepreneurs, while 350 million GEL will be spent on the health care of each citizen", Gakharia said.
'Alternative scenarios needed for economic growth, budgeting'
Transparency International Georgia has presented an analysis and recommendations of the draft anti-crisis budget for 2020 just a few days ahead of a vote in the parliament of Georgia, which recommends that the government of Georgia needs to come up with alternative scenarios for economic growth and budgeting.