Page 26 - bne IntelliNews George country report Sept 2017

6.0 Public Sector 6.1 Budget
Georgian finance ministry forecasts €20.6mn surplus in 2017 budget draft
Georgia's finance ministry has drafted 2017's budget targeting a surplus of GEL54mn (€20.6mn), versus a deficit of GEL2mn budgeted for 2016, agenda.ge reported on October 3. In releasing its draft budget for 2017, the ministry said that it anticipated revenues to the tune of GEL8.71 and expenditures of GEL8.17bn, although it allocated an overall GEL10bn for state agencies and public investment projects.
The ministry amended a previous version of the draft which stipulated GEL10.55bn in expenditures, some 9% of which was to be financed through external borrowing. The ministry said that it modelled its 2017 budget based on this year's performance. Between January and September, instead of the anticipated modest deficit, the ministry reported a “significant” surplus of GEL140mn.
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
6.1.1 Budget dynamics - funding, privatization
EIB lends Georgia €250mn for road rehabilitation
The European Investment Bank (EIB) will lend €250mn to Georgia to restore road infrastructure, the multilateral lender said in a press release on July 13.
The EIB has signed a loan agreement with the Georgian government, represented by Finance Minister Dmitri Kumsishvili, to that effect. The loan
26 GEORGIA Country Report September 2017 www.intellinews.com