Draft of 2021 state budget ready to be discussed in parliament
State budget expenses will increase by 1.14 billion GEL and will amount to 17.07 billion GEL. Photo: Nino Alavidze/Agenda.ge.
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The draft of the state budget 2021 has been prepared and the first reading will be held in parliament from October 6 – 20.
The bill will then be returned to the government with remarks and recommendations of the parliament.
State budget expenses will increase by 1.14 billion GEL and will amount to 17.07 billion GEL.
As of now, expenses related to Covid-19 are not reflected in the state budget, but they will be considered in the final version of the budget.
The budget will be distributed amongst ministries as follows:
- The Ministry of IDPs from the Occupied Territories, Labor, Health and Social Affairs – 4.85 billion GEL
- The Ministry of Regional Development and Infrastructure – 2.42 billion GEL
- The Ministry of Education, Science, culture and sport – 1.73 billion GEL
- The Ministry of Defense – 900 million GEL
- The Ministry of Internal Affairs – 790 million GEL
- The Ministry of Economy and Sustainable Development - 356.5 million GEL
- The Ministry of Environmental Protection and Agriculture - 415.8 million GEL
- The Ministry of Justice – 251 million GEL
- The Ministry of Foreign Affairs – 156 million GEL
- The Ministry of Finance – 81 million GEL
The budget for 2021 has been put together with expectations that revenue from tax will come out to 12.2 billion GEL.
The growth of the Georgian economy in 2021 is projected at 5 per cent.
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.
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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.
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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).
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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.
Georgia has reached an agreement with the International Monetary Fund (IMF) on the parameters of the 2021 budget, announces Georgian Finance Minister Ivane Matchavariani.
Next year Georgia will have a state budget of 18 billion GEL to use for state agencies, projects, and also to alleviate sectors of the economy affected Covid-19. The final version of the draft state budget for 2021 is already being discussed by parliament.
The Georgian government is going to borrow 5.3 bln GEL from multilateral and bilateral donors and partners in external debt in 2021, says the final version of the state budget for 2021. 3.1 billion GEL will be spent on servicing external state debt, while 570 million GEL will be spent on servicing domestic state debt. Based on the final version of the state budget for 2021, government debt is forecasted at 60.1 per cent of GDP by the end of 2021.
Based on the latest IMF forecast the Georgian economy will have lost $1.3 billion this year as a result of the pandemic, while it is expected that it will lose an additional $800 million next year, said Finance Minister Ivane Matchavariani earlier today.
The Institute for Development of Freedom of Information (IDFI) says Georgia’s 2022 state budget draft makes ‘no significant changes’ to bureaucratic expenditures. The organisation explains that despite the 17 mln. GEL increase in labour compensation, ensuring fair and competitive wages for state employees remains ‘problematic.’