State budget 2021: gov’t to increase external debt by 5.3 bln GEL in 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. Photo: Nino Alavidze/Agenda.ge.
Tweet 
Share
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.
However, increased domestic debt is not planned.
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.
By the end of 2021 the state debt is forecasted to stand at 33.68 bln GEL, consisting of external debt of 27.73 bln GEL and domestic debt of 5.95 bln GEL.
The foreign debt portfolio of the government is preferential and consists mainly of long-term loans with the weighted average interest rate on the government's external debt is 1.42 per cent.
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 by Covid-19. Out of the 18 billion GEL state budget, about 13 billion GEL is spent on ministries.
The budget will be distributed amongst ministries as follows:
- Ministry of IDPs from the Occupied Territories, Labor, Health and Social Affairs – 5.56 billion GEL
- Ministry of Regional Development and Infrastructure – 2.42 billion GEL
- Ministry of Education, Science, culture and sport – 1.8 billion GEL
- Ministry of Defense – 900 million GEL
- Ministry of Internal Affairs – 790 million GEL
- Ministry of Economy and Sustainable Development - 469.8 million GEL
- Ministry of Environmental Protection and Agriculture - 463.6 million GEL
- Ministry of Justice – 246.5 million GEL
- Ministry of Foreign Affairs – 174.2 million GEL
- Ministry of Finance – 88.9 million GEL
Meanwhile, the budget of the State Ministry for Reconciliation and Civic Equality of Georgia amounted to 2.55 mln GEL.
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.
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.
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.
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.
The government of Georgia will take a new loan worth 4.47 billion GEL to handle the crisis caused by the coronavirus pandemic, according to the anti-crisis budget for 2020 presented today.
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.
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%.
The 2022 state budget of Georgia has been planned with a 6% economic growth forecast, announces the Ministry of Finance of Georgia. The ministry says that tax revenue will be 23.5% of the gross domestic product (GDP) and the budget deficit will be 4.3% of GDP next year.