2022 state budget of Georgia planned per 6% economic growth forecast
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. Photo: Nino Alavidze/Agenda.ge.
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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.
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 International Monetary Fund (IMF) projects the Georgian economy to grow 7.7% in 2021, 'a significant upgrade from just a few months ago, which implies that output will exceed its 2019 level this year', reads a concluding statement of the IMF staff at the end of an official visit in Georgia.
The parliament of Georgia has approved a state budget of 18.4 billion GEL for 2021 at an extraordinary session earlier today. The state budget includes over 890 million GEL expenditures for quarantine, testing and the COVID-19 vaccine.
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.
Georgia is leading the South Caucasus region with a projected rebound of 8% this year, says the latest edition of the World Bank’s Economic Update for the region, released today. "Georgia’s recovery is expected to edge down to 5.5% in 2022 and 5% in 2023, as macroeconomic support continues to be removed", reads the report.
The International Monetary Fund (IMF) projects the Georgian economy to grow 7.7% in 2021 and 5.8% in 2022, reads the latest report titled World Economic Outlook: Recovery During a Pandemic. With these indicators Georgia will have one of the highest economic growth rates in the region of the Middle East and Central Asia.
In order to ensure the consistent and continuous development of the Georgian army, a higher defence budget has been outlined for the coming year. The parliamentary committee on defence and security discussed the 2022 state budget today.The 2022 budget to be distributed among defence agencies is as follows:Ministry of Defence - 918 million GEL (900 million GEL in 2021)Ministry of Internal Affairs - 800 million GEL (790 million GEL in 2021).
The Institute for Development of Freedom of Information (IDFI) says Georgia’s 2022 state budget draft makes ‘no significant changes’ to bureaucratic expenditures. The organisation explains that despite the 17 mln. GEL increase in labour compensation, ensuring fair and competitive wages for state employees remains ‘problematic.’
Georgian Finance Minister Lasha Khutsishvili has said that the country expects 6% economic growth in 2022, nominal gross domestic product (GDP) amounting to 65 billion GEL (about $20.7 b. / €18.21 b.), while GDP per capita will exceed $5,500 by the end of next year. Khutsishvili asserts that Georgia will ‘fully’ recover to pre-pandemic economic levels and maintain a ‘high’ rate of economic growth.