Finance Minister: 2024 budget “fully respond” to “main tasks” of country

Georgian Finance Minister Lasha Khutsishvili on Wednesday presented the final version of the draft state budget for 2024 to the Parliament and said the document reflected programmes that “fully respond” to the “main tasks” of the country. 

The Ministry cited Khutsishvili as telling MPs the budget had been planned with 5.2 percent economic growth. 

Next year’s average inflation is within its target rate and amounts to 2.8 percent, he said, adding the budget deficit was planned to be 2.5 percent of gross domestic product and the Government debt was at 38 percent of GDP. 

The Minister told lawmakers the budget would amount to ₾28.7 billion ($10.71bln), with assignments increased to all ministries and agencies for next year. 

The budget includes increased salaries, pensions and various social assistance, while the sums are allocated in social, education, defence, security and economic development areas. 

• PM announces increase in pensions for 2024

In comments on parameters of the budget, Khutsishvili said the total resources exceeded ₾25.7 billion ($9.59bln), with tax revenue - estimated at ₾22.53 billion ($8.41bln) - as the main source.

The finances are going to be allocated to the sectors in the following amounts:

• Infrastructure projects - ₾7 billion ($2.61bln)
• Social programmes - ₾6.460 billion  ($2.41bln)
• Educational and science programmes - ₾3.6 billion ($1.34bln)
• Defence and security - ₾2.9 billion ($1.08bln)
• Preschool and general education - ₾2.7 billion ($1.01bln)
• Road infrastructure - ₾1.9 billion ($0.71bln)
• Construction and renovation of municipal infrastructure - ₾1.850 billion ($0.69bln)
• Healthcare programmes - ₾1.816 billion ($0.68bln)
• Social assistance of target groups - ₾1.519 billion ($0.57bln)
• Culture and sport - ₾940 million ($350.79mln) 
• Environmental protection - ₾650 million ($242.54mln)
• Water supply and drainage projects - ₾582 million ($217.19mln)
• Agriculture - ₾579 million ($216mln)
• Tourism - ₾236 million ($88mln)
• Project for building a deep sea port in the Black Sea town of Anaklia - ₾50 million ($18.66mln)

In comments on the Anaklia port project, set for the north-west of the country, Khutsishvili said ₾70 million ($26.12mln) would be provided in total for the construction of the facility, with ₾50 million ($18.66mln) of the sum to be invested in 2024 and ₾20 million ($7.46mln) allocated this year. 

The official also told MPs GDP per capita would exceed $8,000 by the end of the current year and reach $11,000 by 2027 “in conditions of five percent economic growth”.

The Minister also shared expectations of the International Monetary Fund, saying in 2027 the volume of GDP per capita, taking purchasing power into account, would reach $30,000, while the nominal GDP would exceed ₾108 billion ($40.30bln).