Page 27 - GEORptMar20
P. 27
The inflow of equity, namely new capital injected by foreign investors in new projects or already existing FDI companies in Georgia, decreased by 45% y/y to $119mn in Q3 and by 47% y/y to $340mn in Jan-Sept.
6.0 Public Sector 6.1 Budget
Georgian sketches 2020 budget envisaging 2.7% of GDP deficit
Georgia’s government has sketched its 2020 budget planning based on assumptions of 5% GDP growth next year and the targeting of a deficit of 2.7%-of-GDP in line with this year’s target, Business Media reported, citing finance minister Ivane Machavariani.
The public debt to GDP ratio would under the given scenario reach 45%. Budget expenditures are planned at GEL16bn in 2020. Current expenditure would be GEL11bn , infrastructure expenditure would be GEL3.7bn and debt repayment costs would be GEL1bn, according to the broad distribution of expenditures.
GDP is expected to reach GEL48.5bn, or $16.3bn, on an estimated average exchange rate of GEL2.98 to the USD.
The figures will be adjusted in line with the latest exchange rate projections at the time the government completes its budget planning.
27 GEORGIA Country Report March 2020 www.intellinews.com
