Page 38 - Caucasus Outlook 2024

January-October 2023 amounted to $733.8mn, which is 9.2% more than the figure for 10 months of 2022, according to the Centre for Analysis of Economic Reforms and Communication. Of the total volume, the share of exports of agricultural products accounted for $571.1mn (+8.1%); agro-industrial products rose to $162.7mn (+12.9%). Earlier, exports of agricultural and agro-industrial products from Azerbaijan in 2022 amounted to $912.4mn, which is 11.8% more than in 2021. Of the total volume, the share of exports of agricultural products accounted for $717.6mn (+6.7%), and agro-industrial products for $194.8mn (+35.4%).
4.0 Budget and debt outlook 4.1 Budget and debt - Georgia
Georgia’s Ministry of Finance has unveiled the final version of the 2024 budget, reaching a record GEL25 billion. This marks a substantial increase of GEL2.7 billion compared to 2023.
The 2024 budget is anchored in the following macro parameters: economic growth at 5.2%, inflation at 3.0%, and a GEL-to-USD exchange rate of 2.71.
A significant portion of this budget is allocated to officials' salaries in ministries and state-owned enterprises, amounting to GEL2.57 billion — an increase of GEL340 million from 2023. The Ministry of Health is slated to be the highest spender in 2024, with GEL7.8 billion.
According to Galt & Taggart, the fiscal parameters for 2024 are robust. The budget outlines a fiscal deficit and government debt planned at 2.5% and 38.0% of GDP, respectively. These indicators exhibit improvement compared to the previous year and substantial progress from the pandemic parameters in 2020 when the budget deficit was 9.3%, and government debt was 60.2% of GDP.
Taxes are anticipated to generate 90.4% of government revenues, totalling 22.1 billion GEL or 25.6% of the GDP.
Within current expenses, social expenses, including pensions and healthcare, constitute the largest share at 38.7%, followed by wages at 15.6%, and expenditures on goods and services at 14.7%.
In 2024, infrastructure spending is projected to increase by 5.4% annually to 7.1 billion GEL, equivalent to 8.3% of GDP.
As of October 2023, Georgia's foreign debt has reached $8.44 billion, marking a notable increase of $760 million compared to the same period in the previous year.
The Asian Development Bank (ADB) leads Georgia's foreign debt portfolio, providing more than $2 billion, primarily for major infrastructure projects. The World Bank Group follows closely with a contribution of more than $2
38 Central Asia & Caucasus Outlook 2021 www.intellinews.com