Georgian 2021 state budget to be 18 billion GEL

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.