Georgian 2021 state budget to be 18 billion GEL
The 2021 state budget of Georgia will include expenditures for quarantine, testing and Covid-19 vaccine that will exceed 890 million GEL. Photo: Nino Alavidze/Agenda.ge.
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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 2021 state budget of Georgia will include expenditures for quarantine, testing and Covid-19 vaccine that will exceed 890 million GEL.
The spending part of the 2021 state budget reflects additional expenditures in areas such as the indexation of the state pension and the increase of teachers' salaries in accordance with the career scheme", reads the document.
The budget of the Ministry of Health amounts to 5.56 billion GEL. This is an increase of 711 million GEL compared to the previous submission and of 48 million GEL compared to the approved plan for 2020.
The budget of the Ministry of Health is divided according to separate programmes as follows:
- Social protection of the population - 3.83 billion GEL
- Healthcare of the population - 1.54 billion GEL, which in turn includes 400.0 million GEL for Covid-19 related health services
- Assistance to internally displaced people and migrants - 71.8 million GEL
- Renovation and equipment of medical institutions - 30.0 million GEL
- Labour and employment system reform programme - 8.9 million GEL
The 2021 state budget was previously planned with a 4.3 per cent economic growth forecast, however Georgian Finance Minister Ivane Matchavariani said that there was 'a significant decline in revenues' in November and January and February will be 'severe' because of the new restrictions announced by the government on November 26, which will affect economic growth next year.
Matchavariani projected the economy would experience 4% growth next year.
Georgian Finance Minister Ivane Matchavariani said that the new restrictions imposed by the government today give ground to revise the economic growth rate of 2021.
The 2021 state budget of Georgia will include expenditures for quarantine, testing and Covid-19 vaccine and will be discussed at the parliament of Georgia by the end of this month, announces Georgian Finance Minister Ivane Matchavariani.
Georgia has reached an agreement with the International Monetary Fund (IMF) on the parameters of the 2021 budget, announces Georgian Finance Minister Ivane Matchavariani.
The draft of the state budget 2021 has been prepared and the first reading will be held in parliament from October 6 – 20.
State-owned enterprises have lost about 130 million GEL in revenue due to the coronavirus pandemic reads the Fiscal Risk Analysis Document which accompanies the final version of the 2021 draft budget.
The 2021 budget of the Ministry of Regional Development and Infrastructure will be 2.37 billion GEL: the highest in the history of the ministry and exceeds the budget of 2020 by 551.3 million GEL (30%), announces the ministry.
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.
The 2021 Tbilisi budget will be over 1.1 bln GEL, Tbilisi Mayor Kakha Kaladze has announced earlier today, noting that 33 per cent of the budget will be spent on social and healthcare projects.
The head of the National Bank of Georgia Koba Gvenetadze projects the Georgian economy will grow 5% in 2021.
Georgian non-governmental organisation the Institute for Development of Freedom of Information (IDFI) has reviewed the 2021 state budget of Georgia and presented its recommendations to help the government better formulate a financial plan for the 2021 fiscal year.
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 Parliament of Georgia has approved an updated state budget of Georgia which is now planned with a 7.7% economic growth forecast instead of 3.4%. In addition, the deficit has been lowered from 7.6% to 6.9% and the government's debt has been lowered to 54.6%.