Parliament discusses 2008 draft budget
By M. Alkhazashvili
(Translated by Diana Dundua)
(Translated by Diana Dundua)
Friday, December 14
The recent political turmoil and upcoming snap presidential election has delayed the passage of the 2008 state budget, and the latest version is due to be presented to parliament December 14.
The original draft was presented to parliament on October 1, but since then newly-appointed Prime Minister Lado Gurgenidze changed the emphasis of the budget to focus more on social issues, as ruling party candidate Mikheil Saakashvili made a string of promises in his re-election campaign to combat poverty in Georgia.
Apportioning additional resources to the social sphere will likely result in a decrease in defense spending, according to former economy minister Lado Papava, now an independent MP.
“The defense sphere receives the largest portion of the budget so it is logical that it be reduced,” Papava told the newspaper Rezonansi. In 2007 budget amendments increased defense spending throughout the year, bringing the final figure was GEL 1.5 billion, around a third of the entire state budget.
The initial October draft for 2008 planned for a budget of GEL 4.6 billion and put expected revenue at GEL 3.8 billion. New Rights presidential candidate Davit Gamkrelidze, however, claims that economists predict Saakashvili’s promised social programs will cost a total of GEL 11 billion.
The original draft was presented to parliament on October 1, but since then newly-appointed Prime Minister Lado Gurgenidze changed the emphasis of the budget to focus more on social issues, as ruling party candidate Mikheil Saakashvili made a string of promises in his re-election campaign to combat poverty in Georgia.
Apportioning additional resources to the social sphere will likely result in a decrease in defense spending, according to former economy minister Lado Papava, now an independent MP.
“The defense sphere receives the largest portion of the budget so it is logical that it be reduced,” Papava told the newspaper Rezonansi. In 2007 budget amendments increased defense spending throughout the year, bringing the final figure was GEL 1.5 billion, around a third of the entire state budget.
The initial October draft for 2008 planned for a budget of GEL 4.6 billion and put expected revenue at GEL 3.8 billion. New Rights presidential candidate Davit Gamkrelidze, however, claims that economists predict Saakashvili’s promised social programs will cost a total of GEL 11 billion.