Parliament approves updated state budget 2021 of Georgia
The Parliament of Georgia has approved an updated state budget of Georgia which is now planned with a 7.7% economic growth forecast instead of 3.4%. Photo: Parliament of Georgia.
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The Parliament of Georgia has approved an updated state budget of Georgia which is now planned with a 7.7% economic growth forecast instead of 3.4%.
In addition, the deficit has been lowered from 7.6% to 6.9% and the government's debt has been lowered to 54.6%.
The government raises taxes by 1.11 billion GEL and boosts budget income by 1.17 billion GEL. The state budget will be used to spend nearly 19.5 billion GEL next year", reads the press-release published by the Parliament of Georgia.
First Deputy Finance Minister Giorgi Kakauridze said that the updated forecast of economic growth, which is now 7.7%, was confirmed by the International Monetary Fund.
The revised budget has been amended to support two more, agricultural and economic productive sector programmes, and health care costs related to the Covid-19 pandemic.
Kakauridze said that 446 million GEL was added to the Covid-19 health expenditures which now amounts to 846 million GEL.
More than 150 million GEL is provided for vaccination, which perfectly covers 60% of our population", he said.
Leader of the opposition Strategy Aghmashenebeli party Giorgi Vashadze said that this budget has nothing to do with stimulating the economy, but only aims to distribute more money to Georgian Dream public officials for election purposes and spend more money to buy more votes.
The International Monetary Fund (IMF) projects the Georgian economy to grow 7.7% in 2021, 'a significant upgrade from just a few months ago, which implies that output will exceed its 2019 level this year', reads a concluding statement of the IMF staff at the end of an official visit in Georgia.
The parliament of Georgia has approved a state budget of 18.4 billion GEL for 2021 at an extraordinary session earlier today. The state budget includes over 890 million GEL expenditures for quarantine, testing and the COVID-19 vaccine.
The Georgian government is going to borrow 5.3 bln GEL from multilateral and bilateral donors and partners in external debt in 2021, says the final version of the state budget for 2021. 3.1 billion GEL will be spent on servicing external state debt, while 570 million GEL will be spent on servicing domestic state debt. Based on the final version of the state budget for 2021, government debt is forecasted at 60.1 per cent of GDP by the end of 2021.
Next year Georgia will have a state budget of 18 billion GEL to use for state agencies, projects, and also to alleviate sectors of the economy affected Covid-19. The final version of the draft state budget for 2021 is already being discussed by parliament.
The 2022 state budget of Georgia has been planned with a 6% economic growth forecast, announces the Ministry of Finance of Georgia. The ministry says that tax revenue will be 23.5% of the gross domestic product (GDP) and the budget deficit will be 4.3% of GDP next year.
In order to ensure the consistent and continuous development of the Georgian army, a higher defence budget has been outlined for the coming year. The parliamentary committee on defence and security discussed the 2022 state budget today.The 2022 budget to be distributed among defence agencies is as follows:Ministry of Defence - 918 million GEL (900 million GEL in 2021)Ministry of Internal Affairs - 800 million GEL (790 million GEL in 2021).