Page 23 - bne IntelliNews Georgia country report November 2017

Georgian government submits 2018 budget draft for parliamentary debate
Georgia's parliamentary committees finalised discussions on the initial draft of the 2018 state budget, which envisages increasing funding for infrastructure projects while reducing administrative expenditures in several ministries, according to civil.ge. Overall, the draft stipulates a 4.1% y/y increase in expenditure to GEL9.5bn (€3.23bn) and a 6.75% y/y increase in revenues thanks to improved tax collection.
The healthcare and social protection ministry will receive more than a third of the projected expenditure, or GEL3.52bn, slightly more than what it had allocated in 2017. Of this amount, GEL2.46bn will be devoted to pensions and social protection and GEL982.8mn to healthcare spending.
Meanwhile, the regional development and infrastructure ministry will receive a 50% hike in its budget to GEL1.83bn, and will be expected to spend 70% of this amount on road infrastructure. The Georgian government has focused heavily on improving regional infrastructure to boost trade, regional development, tourism and services.
Of the remaining ministries, agriculture, internal affairs, education, environmental protection and culture will receive higher budgets compared to 2017. Meanwhile, the economy and defence ministries will experience sizeable cuts in their budgets.
After receiving remarks from parliament about the budget draft, the government is expected to submit an amended version no later than November 5. Opposition parliamentary factions reportedly criticised the draft for keeping the provisions for social allowances and pensions unchanged compared to 2017.
Georgia State Budget Figures
(GEL mn)
2015 Actual
2016 Plan
2017 Plan
Revenues
8,170.50
8,555.0
9,489.46
Tax revenues
7,549.61
7,980.0
8,820.0
Grants
315.59
255.0
284.46
Other revenues
305.30
320.0
385.0
Expenditures
8,158.0
8,543.57
9,121.22
Compensation for employees
1,376.78
1,443.30
1,393.51
Use of goods and services
946.22
1,037.49
1,144.27
Interest Expense
326.59
473.76
503.04
Subsidies
245.74
264.48
419.97
Grants
1,271.34
960.93
1,020.28
Social benefits
2,802.40
3,057.0
3,313.18
Other expense
1,188.92
1,306.61
1,326.98
Net operating balance
12.50
11.43
368.23
Change in nonfinancial assets
392.85
525.07
909.04
Total balance
-380.35
-513.64
-540.81
Source: finance ministry 23 GEORGIA Country Report November 2017 www.intellinews.com