Page 33 - GEORptDec21

6.0 Public Sector 6.1 Budget
Georgia revises 2022 budget in line with higher GDP forecast
The government of Georgia has revised its 2022 budget planning in line with higher expected GDP, and also to include lawmakers’ remarks. The revised planning has been submitted to parliament, according to the chairman of the parliamentary committee for finance and budget, Irakli Kovzanadze.
The government revised the budget in line with 10% GDP growth this year, compared to the 9.5% assumed previously. In nominal terms, GDP is expected to hit GEL65bn this year.
According to Kovzanadze, the revised version of the 2022 budget includes an increase in funding in a number of areas.
The government has maintained its growth forecast for next year at 6%.
In the first nine months of 2021, the Georgian economy grew by 11.3% y/y. The general government deficit target is kept at 4.4% of GDP.
The public debt is seen as reaching 52.2% of GDP by the end of 2022.
“The revised 2022 budget draft includes significant changes in the allocation of funds and we have more funding for a number of spending entities. The revised version takes into account some of the remarks and suggestions made in parliament during the review of the initial version,” the chairman of the parliamentary committee for finance and budget said.
This week, the committee will discuss the revised version of the draft state budget in detail.
6.2 Taxation
Georgia drafts strict taxation and regulations for gambling industry
The Georgian Ministry of Finance on November 29 unveiled a detailed model for the regulation and taxation of the gambling industry, which prohibits those aged under 25, public officials and vulnerable citizens (altogether over 25% of the country’s population) from gambling. Taxation is rising by 65%-70% as an effect of the new regulations as well.
Advertising is banned, gambling abroad is banned and family members can ask in court for an individual ban for gambling.
Restrictions are not imposed against foreign nationals gambling in Georgia. The reforms are justified by Georgian authorities as a way of mitigating the social impact of the industry.
The changes were announced by Prime Minister Irakli Gharibashvili one week earlier.
Minister of Finance Lasha Khutsishvili told BMG that in the near future the issue will be discussed with the interested parties, and the parliamentary discussions of the initiative will begin.
At the same time, Lasha Khutsishvili states that he does not agree with the assessment of the Gambling Business Association that “the sector will return 20 years with the planned changes”.
33 GEORGIA Country Report December 2021 www.intellinews.com