Georgian PM, Economic Council members review positive trends, key directions of 2024 budget

The positive trends in the Georgian economy and the priority directions of the 2024 budget were reviewed on Saturday in a meeting of the Government’s Economic Council led by Prime Minister Irakli Garibashvili.

Garibashvili said the Government would purchase apartments for about 1000 homeless families with many children and noted a total of ₾50 million (about $18.5 mln) would be allocated for the programme, which was set to begin next year.

At the meeting, new programmes of Enterprise Georgia - the state agency promoting entrepreneurship, investment and exports - were discussed to support business, including the microloans, which will contribute to increasing access to finance for micro and small entrepreneurs, the Government Administration said.

A report on the privatisation of state property was presented to the Head of the Government, according to which as of today ₾180 million (about $66.8 mln) worth of property was privatised, out of which ₾121 million (about $44.9 mln) had already been transferred to the central budget.

The Council also discussed the issues of capital market promotion and noted the companies issuing securities and placing them on the capital market would be able to recover part of the costs for the issuance. The establishment of a private equity investment fund was also reviewed, through which small and medium-sized companies will have the opportunity to use alternative sources for financing.

The conversation touched on the development of countrywide spatial planning for which an international consulting consortium will be selected. The best five will be selected out of 19 applications and the winner will be announced by the end of 2023.

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The members of the Council also discussed the 2023-2026 strategy of the comprehensive reform of State Owned Enterprises, adopted in December 2022. It was said that the work on drafting the relevant law and the discussions in this regard with stakeholders were underway.

The results of the first auction of electricity production capacity for 300 MW were also reviewed at the meeting, with the members of the Council noting that it was planned to announce the second phase of the auction for 600 MW capacity.