Page 23 - GEORptDec17

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
Georgian parliament mulling pension reform
EIB lends Georgia €250mn for road rehabilitation
The Georgian government is mulling a controversial pension reform scheme in order to enhance savings in the country, Georgiatoday reported on November 8.
The scheme will see to it that every taxpayer has 2% of their wages retained in the state pension fund. The employer and the state would also contribute the same amount. Men over the age of 65 and women over the age of 60 would receive the money when they retire.
The goal of the scheme is to increase retirement pensions and encourage savings. At the moment, the average pension is GEL180 (€58.8), or only 18% of the average salary.
However, critics of the scheme claim that a risk exists that the funds will be nationalised, just as happened in countries like Poland and Hungary.
The reform is currently being discussed in parliament. If approved, it will take effect in late 2018.
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 represents the second and last tranche of a €500mn framework loan aimed at rehabilitating some 253 kilometres of primary and secondary roads between
23 GEORGIA Country Report December 2017 www.intellinews.com