Page 26 - GEORptJul18

some companies from non-resident to resident units and the reduction of debt liabilities to non-resident direct investors (mostly payment of loans), Geostat said in a statement.
While FDI tends to fluctuate from quarter to quarter in Georgia, the Q1 2018 figure is the second-lowest since the beginning of 2015, above only the Q4 2016 amount ($263.1).
The UK was the top source of investment in the quarter, accounting for $82.7mn, followed by Azerbaijan ($51.0mn) and China ($41.6mn).
Georgia’s financial sector attracted the largest share of investment — $110.6mn — in line with the previous quarter, while construction ($69.1mn) and manufacturing ($40.2mn) also attracted substantial amounts of FDI.
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
26 GEORGIA Country Report July 2018 www.intellinews.com