Tbilisi Budget 2020 & Its Priorities
The total budget allocated to Tbilisi for 2020 amounts to GEL 1,020,000,000 ($342,857,139), with revenues of GEL 979,569,000 ($329,266,887.05); GEL 30 million less than the planned revenues of 2019, GEL 1,010,200,500 ($339,563,189.46).
Next year's draft budget also specifies that out of the total revenues, GEL 675 million ($226.89m) are taxes, GEL 100 million ($33.61m) are grants and GEL 202 million ($67.90m) are other revenues.
On the whole, the 2020 revenues are lower, but in some areas Tbilisi City Hall has more positive expectations than it had this year, in revenues from taxes, for example, which are projected to grow by about GEL 17 million in the 2020 budget.
City Hall also expects about GEL 15 million more to be included in the capital's 2020 property tax budget. Where the current plan was GEL 185 million, next year City Hall expects that it will be able to mobilize GEL 205 million from property tax, which is GEL 20 million more than in 2019.
As for other revenues, the Tbilisi City Hall is also expecting more money from construction permits in 2020 than this year. The plan for 2019 was GEL 8.5 million and next year GEL 10 million.
The capital city government is also expecting millions of Lari more in revenue from the taxi license fee (this year's plan was GEL 700,000), and GEL 11 million more from fines, up to GEL 51 million from this year’s GEL 40 million. However, next year there is an expected fall of GEL 4 million from the gambling business fees compared to 2019 revenues.
Compared to the previous year, the volume of expenditures is also to decrease in the 2020 budget, to GEL 735 million ($247m), GEL 28 million less compared to 2019 expenditures of GEL 763 886.0 thousand ($256,768 thousand).
In addition to this, by 2020, remuneration will be reduced by GEL 20 million. The budget also stipulates that the number of employees in Tbilisi Municipality is to decrease by 1266 people. Where in 2019 there were 4936 people employed in the Municipality, in 2020 the number of employees will be reduced to 3670. City Hall explains that it is not planned to reduce workplaces and the changes come as a result of the Tbilisi ambulance unit being relocated to the subordination of the Health Ministry from next year.
Regarding the expenses of the City Hall administration and Tbilisi City Council, the number of employees in this field is to increase by 51 persons. Employees will be added to the Municipal Inspection and City Transport Department. The number of employees in the City Hall administration has not changed and there are still 115 employees, but the payroll has increased by GEL 242,000. ($81,344).
The Reserve Fund next year will be halved and will amount to GEL 2.5 million. The subsidy costs will be increased by GEL15 million, while Tbilisi City Hall will spend GEL 10 million less next year on social programs.
The budget of the Tbilisi Municipality 2020 provides the following key priorities:
- Construction of transport infrastructure and its restoration: GEL122 046.1 thousand ($41023.87 thousand)
- Construction of infrastructure facilities, operation and reinforcement of emergency buildings: GEL 269 046.9 thousand ($90435.93 thousand)
- Maintenance and improvement of ecological status: GEL 111 348.1 thousand ($37427.93 thousand)
- Promotion of economic development: GEL 7 127.5 thousand ($2395.80 thousand)
- Development of house-owner partnerships: 38 296.3 thousand GEL ($12872.71 thousand)
- Health care and social security: GEL 151 695.8 thousand ($50990.18 thousand)
- Education: GEL 168 559.6 thousand ($56658.69 thousand)
- Culture, Sport and Youth: GEL 41 835.5 thousand ($14062.35 thousand)
- Public order and security: GEL 6 601.2 thousand ($2218.89 thousand)
- Representative and executive bodies of Tbilisi: GEL 103 442.9 thousand ($34770.72 thousand).
By Tea Mariamidze
Image source: matadornetwork.com