Sector Economy and Economic Policy Committee discusses draft state budget 2020

The draft budget was introduced to the Sector Economy and Economic Policy Committee of the Parliament of Georgia by the Deputy Finance Minister Giorgi Kakauridze, who spoke in detail about the components of the 2020 budget.

Kakauridze overviewed the projected economic growth rates as 5% in 2020 and served as the basis for calculating the financial capital envisaged in the 2020 budget. The draft foresees a low budget deficit index of 2.7 percent, which is one of the primary indicators used in budget planning.

Speaking of the different dimensions of the budget, he introduced the additional resources allocated for improving the social system.

He emphasized the respective changes claiming that benefits would rise for pensioners as well as people with disabilities under the age of 18, which will cost GEL 300 million altogether. Additionally, the prices of all medical services within universal healthcare will be reduced to citizens' co-payment amounts.

The Ambulances and Rural Doctor Institution will be merged under unified management and their salaries will increase with GEL 100 starting from July 1, 2020 (covering 8000 persons). 1.8 mln GEL will be allocated for the education system; the salaries for certain teachers (43 000 citizens) will increase with 150 GEL from October 1, 2019, and with 150 GEL in 2020. Salaries for the kindergarten educators will also increase with 100 GEL from September 1, 2020, amounting to GEL 15 mln in total. GEL 280 mln will be allocated for educational infrastructure. In 2020, the soldiers, fire rescuers, and policemen will also receive increased salaries which will be ensured with GEL 50 mln. The infrastructural projects will receive GEL 3.7 billion.

The principal specifications of the state budget were also introduced to the Committee in terms of revenue and expenditure. The projected revenue in 2020 is GEL 14 040.0 mln, including revenues – 11 035.0 ml GEL; where tax revenues constitute 10 320.0 ml GEL, grants – 200 mln GEL and other incomes – 515 mln GEL.

After presenting the budgetary options in detail, Kakauridze answered the questions of the Committee members. Together with the speaker, Deputy Minister of Regional Development and Infrastructure Mzia Giorgobiani and Deputy Minister of Economy and Sustainable Development Ekaterine Mikabadze answered the MPs' questions.

After the discussion, the Committee voted on the proposed budget and supported its consideration at the plenary session of the Parliament.

Georgian PM Giorgi Gakharia has noted that the 2020 budget embraces the spirit of social responsibility and economic development of the state, during an extraordinary meeting of the Cabinet to review the 2020 budget last month. According to him, the 2020 budget is based on the needs of citizens and is based on the social interests of the most significant social strata.

A total of GEL 14 211 880 700 will be allocated to the 2020 budget, a GEL 1,121 billion more than the 2019 budget plan (GEL 13 090 000 000 was budgeted for 2019). In accordance with the “socially responsible” plans, most of the money will be allocated to the Health Ministry.