State Budget May Increase by 120 Million GEL

The Georgian Government plans to adjust the 2015 budget with an increase of 120 million Lari. The Minister of Finance, Nodar Khaduri, presented the state budget report and a corrected budget draft of the ongoing year at a Government meeting.

According to the Minister, from January to October the consolidated budget tax revenue was 6 billion and 526 million, 641 million more than it was in the same period last year.

According to data released on November 6th, the consolidated budget tax revenue is already at 6 billion and 641 million which is 85% of the annual plan.

The state budget revenues amounted to 7 billion and 962 million, which is 84% of the annual plan.

The state budget mobilized 605 million Lari more than in the same period last year. In total 7 billion and 710 million Lari was spent from January to October and the capital financing expenses amounted to 1 billion and 226 million Lari in the past ten months.

“Based on these trends, we are presenting a state budget draft amendment of 2015. Given the trend of economic growth and tax mobilization, I would like to ask to increase the tax plan in the budget by 120 million Lari,” said Minister Khaduri. “At the same time, we want to reduce borrowing in the domestic market by 283 million Lari. There will be no need to issue treasury bills.”

Foreign lending will decrease by approximately 100 million Lari and 96 million Lari, which will be redirected to the Ministry of Labor, Health and Social Affairs. Financing of leasing will increase by 4 million in the Ministry of Agriculture. Simultaneously, funds for irrigation and drainage will decrease and the project will be delayed for one more year. Funding for the Ministry of Regional Development and Infrastructure will drop by 77 million Lari.

The Minister of Finance has asked the Cabinet of Ministers to send the presented amendments to the Parliament this week. Prime Minister Irakli Garibashvili said the Government will approve the presented project.