Page 35 - GEORptOct21

Specifically, evaluations should be made as to whether network hardware and software suppliers are subject, without independent judicial review, to control by a foreign government.
Georgian Foreign Minister David Zalkaliani said that “the signing of the 5G memorandum and its successful implementation serves this very goal and will increase US companies’ interest in Georgia. Moreover, the launch of new and up-to-date technologies will contribute to Georgia’s sustainable economic development”.
By signing the memorandum, Georgia has joined the US Clean Network programme “safeguarding the nation’s assets including citizens’ privacy and companies’ most sensitive information from aggressive intrusions by malign actors”.
6.0 Public Sector 6.1 Budget
Georgia envisages lower public deficit helped by stronger GDP growth
Georgia's government has revised its public budget planning for this year to include stronger growth. The country's 2021 GDP expansion is expected to come in at 6.5% under the latest official outlook, compared to the 4.3% anticipated during the initial drafting of the budget planning.
The general government budget target has been revised to 7.1% of GDP from 7.5% previously.
The public debt to GDP ratio is, meanwhile, projected to remain below the 60% threshold at 57.3% at the end of this year, compared to the 60.1% calculated under the initial budget planning. This downward revision stems from the combined effect of the higher-than-expected GDP growth and slightly lower public financing needs.
Revenues were revised upward by 2.5% to Georgian lari (GEL) 12.345bn ($3.91bn).
The revised budget planning will be submitted to parliament for approval.
According to the 2021 budget planning, budgetary revenues this year are set at GEL16.76bn ($5.1bn), up by GEL2.2bn compared to 2020. The state budget estimates tax revenues at GEL10.34bn. The document calculates revenues from foreign grants at GEL287mn; other revenues are expected at GEL550mn. GEL5.28bn is set to be allocated through external debt. Revenues from privatisation are set at GEL150mn.
The government drew up the budget planning with the assumption of 4.3% economic growth in 2021. It projects 5.5% in average economic growth in 2022-2024.
Budgetary expenditures are set at GEL18.38bn, up by GEL4.06bn compared to 2020. Under the 2020-2021 anti-crisis plan, GEL2.8bn ($850mn) will be allocated to support businesses and GEL200mn ($61mn) to assist citizens.
35 GEORGIA Country Report October 2021 www.intellinews.com