Finance Minister: 2021 state budget designed to stimulate economy, alleviate sectors affected Covid-19

Georgia has reached an agreement with the International Monetary Fund (IMF) on the parameters of the 2021 budget, announces Georgian Finance Minister Ivane Matchavariani.

We have reached an agreement not only on macro indicators, but also on what the budget structure for 2021 should be. This structure will be developed in two directions: one will be to alleviate sectors and people affected by Covid-19, while the other will be fiscal and economic stimulus”, Matchavariani said.

He said that the IMF will release the detailed information about the agreement reached with the Georgian government in coming days.

According to the draft of the state budget for 2021, 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 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.