2022 state budget of Georgia planned per 6% economic growth forecast

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.

The 2022 state budget parameters are:

• Consolidated budget tax revenues in nominal terms amount to 15.19 billion GEL
• The total current expenditures are projected at 14.2 billion GEL
• Capital expenditures are projected at 5.5 billion GEL
• The debt limit of the government of Georgia as a percentage GDP will be 52.7% (60% was this year)
• The amount of state budget allocations will be 18.44 billion GEL

What expenditures will the 2022 state budget include?

The 2022 state budget of Georgia will include expenditures for the indexation of state pension, increase in teachers' salaries and pensions, funding healthcare costs related to the coronavirus pandemic

Specifically:

• 500 million GEL will be allocated for coronavirus healthcare costs
• 2.88 billion GEL - for pensions (increased by 285 million GEL y/y)
• 982.6 million GEL - for social assistance to target groups of the population (increased by 91.6 million GEL y/y)
• 1.86 billion GEL - for road infrastructure (increased by 323.4 million GEL y/y)
• 975 million GEL - for schools (increased by 79.4 million GEL y/y)
• 741 million GEL - for the Ministry of Economy
• 577 million GEL - for the Ministry of Environment Protection and Agriculture
• 463.8 million GEL - for renovation of regional infrastructure
• 134 million GEL - for construction and renovation of general education infrastructure
• 108.9 million GEL - to build homes for internally displaced persons and support the migrants75 million GEL - for social benefits for people living in a highland settlements

Georgian Finance Minister Lasha Khutsishvili said that this is the initial version of the 2022 draft budget  and once the parliamentary committees discusses it and return it to the government with the remarks and comments, it will be possible for the final version of the budget to be corrected.