Page 35 - GEORptJun22

6.0 Public Sector 6.1 Budget
Georgia revises 2022 budget in line with higher GDP forecast
The government of Georgia has revised its 2022 budget planning in line with higher expected GDP, and also to include lawmakers’ remarks. The revised planning has been submitted to parliament, according to the chairman of the parliamentary committee for finance and budget, Irakli Kovzanadze.
The government revised the budget in line with 10% GDP growth this year, compared to the 9.5% assumed previously. In nominal terms, GDP is expected to hit GEL65bn this year.
According to Kovzanadze, the revised version of the 2022 budget includes an increase in funding in a number of areas.
The government has maintained its growth forecast for next year at 6%.
In the first nine months of 2021, the Georgian economy grew by 11.3% y/y. The general government deficit target is kept at 4.4% of GDP.
The public debt is seen as reaching 52.2% of GDP by the end of 2022.
“The revised 2022 budget draft includes significant changes in the allocation of funds and we have more funding for a number of spending entities. The revised version takes into account some of the remarks and suggestions made in parliament during the review of the initial version,” the chairman of the parliamentary committee for finance and budget said.
6.2 Taxation
Georgia drafts strict taxation and regulations for gambling industry; bans gambling ads
The Georgian Ministry of Finance on November 29 unveiled a detailed model for the regulation and taxation of the gambling industry, which prohibits those aged under 25, public officials and vulnerable citizens (altogether over 25% of the country’s population) from gambling. Taxation is rising by 65%-70% as an effect of the new regulations as well.
Advertising is banned, gambling abroad is banned and family members can ask in court for an individual ban for gambling.
Restrictions are not imposed against foreign nationals gambling in Georgia. The reforms are justified by Georgian authorities as a way of mitigating the social impact of the industry.
Incomes of revenues from gambling will be subject to a 2% income tax.
All gambling ads will be banned in Georgia starting March 1, while citizens under the age of 25 will no longer be able to use gambling websites, Prime Minister Irakli Garibashvili announced on 24 February.
The head of the government called the issue one of the biggest problems for Georgian society over the years, adding GEL1.5bn ($476mn/€426mn) was spent in online casinos every year, mostly involving youth and minors. Speaking about the new restrictions, the PM said “many people were involved in these vicious games”, adding even a reduction of the figure by a billion
35 GEORGIA Country Report June 2022 www.intellinews.com