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Georgian Parliament approves 11 billion GEL budget for 2017

Friday, December 16
102 votes in favour and 10 against – the Parliament of Georgia has approved the 2017 state budget.

Yesterday the Parliament approved state budget worth of 11 billion GEL (about $4.14 billion/ˆ3.95 billion*) to use for state agencies, projects and to further the country.

The fiscal and macro-economic indices were planned with the conservative approaches for 2017 and constituted four percent of Gross Domestic Product (GDP) real growth and GDP deflator.

In the mid-term period the real economic growth forecast was expected to constitute six percent and GDP deflator – three percent.

The state budget assignments were defined as 11,415.5 million GEL, including budgetary funds (10,338.3 million GEL), credits (922.7 million GEL) and grants (154.5 million GEL).

The forecast index of budget incomes were defined as 11,457.2 million GEL; non-financial asset reduction sums – 90 million GEL; liability increase fund plan – 1,792.7 million GEL.

The expenditure total constituted 9,121.2 million GEL.

Georgia’s Ministries of Health, Education, Agriculture and Infrastructure will receive the highest financing next year. In particular:
• Ministry of Health, Labour and Social Protection will receive 3,414.8 million GEL;
• Ministry of Education and Science will receive 1,116.2 million GEL;
• Ministry of Agriculture will receive – 258 million GEL; and
• Ministry of Regional Development and Infrastructure will recieve 1,258.0 million GEL.

Meanwhile, the 2017 state budget also envisaged 65 million GEL to the Georgian citizens to facilitate conversion of the loans in foreign currency into the national currency Lari (GEL) – the loans obtained before January 1, 2015 not exceeding 100,000 GEL.

The budget also envisaged increase of the excise fees on tobacco giving extra 200 million GEL income. The excise fees will increase on vehicles to allow mobilisation of extra 45 million GEL. The excise fees on oil will also increase allowing obtainment of more than 250 million GEL.

Meanwhile, the salary fund and administrative costs in almost all the budgetary organisations will be reduced with 10 percent giving extra 100 million GEL. Furthermore, some budgetary organisations will be annulled or no more financed.

The Fund for Regional Projects will receive 260 million GEL while the Fund for Highland Region Development will enjoy 20 million GEL next year.

Government’s reserve fund will include 40 million GEL and President’s reserve fund – five million GEL (