Georgia’s state budget will be cut down with 140 million GEL. According to the Minister of Finance Nodar Khaduri, the budget reduction was caused by the need to cover the damage of the flood of June 13.
Georgia’s state budget will be cut down by 140 million GEL
By Tatia Megeneishvili
Wednesday, June 24
“We have no exact numbers, but the damage is over 100 million GEL. We have worked with our colleagues and took into account all the remarks. The reduction will mainly concern the ongoing expenditures,” stated Khaduri.
According to Khaduri, the reduction will not be reflected on capital and social expenditures.
“The amended draft budget did not reduce social project expenditures and costs that were needed for co-financing projects in which the state was involved with the private sector,” said Khaduri.
Prime Minister of Georgia Irakli Gharibashvili said that the reduction process is a normal process.
“Since we have a crisis in the region we had to make this adjustment,” stated Gharibashvili.
The two ministries which were mostly touched with the cut down are Ministry of Defense and Ministry of Internal Affairs (MIA).
According to Interior Minister Vakhtang Gomelauri, the cut down amount is approximately 15 million GEL.
“Initially a greater reduction was planned, though as the MIA must soon be divided into two agencies and a security service has to be set up, this will lead to significant costs. Staff, administration and others are necessary for the security service. Hence, we need funds. Budget cuts will concern fuel, travel, etc. ,"said Gomelauri.
The amended budget was one of 34 issues on the agenda for June 23’s Governmental session.