Page 24 - GEORptMar19

FDI in Georgia by sector [‘000 $]
Q2, 2018
2017 y/y
Q1 y/y
Q2 y/y
4Q ending June
y/y
Total
389,198
21.0%
-27.1%
9.4%
1,821,249
19.4%
of which:
Agriculture, fishing
6,920
48.3%
-230.9%
72.6%
14,082
22.7%
Mining
17,616
4.1%
85.0%
25.3%
65,561
38.8%
Manufacturing
22,233
-21.5%
211.8%
21.7%
130,163
0.2%
Energy sector
108,798
54.6%
-23.4%
651.5%
315,729
246.8%
Construction
29,144
67.8%
27.1%
-56.3%
260,283
11.2%
Hotels and restaurants
7,622
35.9%
233.4%
-69.6%
75,441
-5.0%
Transports and communications
77,028
-23.0%
-108.0%
-33.3%
313,755
-40.3%
of which:
-
Transports
64,869
-18.0%
-46.6%
-45.1%
365,150
-29.0%
Communications
12,159
-71.6%
-748.0%
-550.1%
-51,395
-561.9%
Health and social work
1,617
-75.5%
12366.0%
99.6%
16,402
-3672.2%
Real estate1
34,254
259.4%
-131.9%
-23.7%
85,976
-40.1%
Financial sector 2
64,063
114.4%
45.3%
3171.7%
399,238
318.0%
Source: NSI of Georgia, bne Intellinews
6.0 Public Sector 6.1 Budget
Georgian parliament passes 2018 budget law
With 111 votes in favour out of 150, the Georgian parliament passed the country's 2018 budget on December 13, according to agenda.ge. The budget stipulates an 8.5% increase in spending to GEL12bn (€4bn) compared to the 2017 budget.
Meanwhile, revenues will amount to GEL10.5bn. Some GEL9.5bn of the revenues will arrive in the form of taxes, while the rest will be covered from grants and loans from donors.
Large budget deficits have been an issue for the small country in the South Caucasus for years, particularly because the government has used loans to finance them. Contributing to the 2018 budget deficit is an expected shortfall in corporate tax collections as a result of a tax reform passed in 2017 that lowers corporate tax in order to boost private investment.
Three ministries will account for more than half the spending: healthcare (GEL3.5bn), infrastructure (GEL1.85bn) and education (GEL1.18bn). Universal healthcare coverage has been one of the main electoral promises with which the ruling Georgian Dream party has based its campaigns since 2012.
24 GEORGIA Country Report March 2019 www.intellinews.com