2007 Draft Budget Proposed

According to the draft budget for 2007, revenues are set at GEL 3.4 billion (approximately USD 1.9 billion) and expenditures – at GEL 3.8 billion (approximately USD 2.1 billion). 

The government expects GEL 100 million from privatization next year.

The parliamentary committees have already launched discussion of the 2007 draft budget, which was presented by the government on October 1.

Next year, GDP growth rate is set at 7.5% and is expected to reach GEL 16 billion; while the Georgian currency?s exchange rate against the US dollar is forecasted at 1.75 Lari per USD.

The draft budget says that consumer price inflation will be 6% in 2007.

According to the 2007 draft budget, Ministry of Defense will receive GEL 392.5 million. Initial 2006 budget envisaged GEL 392,2 million, but the figure was increased up to GEL 605 million in a course of 2006.

Financing of the Ministry of Labor, Health Care and Social Welfare will increase significantly ? up to GEL 999.7 million against 775.4 million in 2006, while the financing of the Energy Ministry will decrease to GEL 111.6 million from 275.4 million in 2006.

According to the 2007 draft budget, financing of other ministries will be as follows:

Ministry of Finance ? GEL 751,5 million;
Ministry of Economic Development ? GEL 456,8 million;
Ministry of Justice? GEL 92,2.million;
Foreign Ministry ? GEL 59,9 million;
Interior Ministry ? GEL 245,7 million;
Ministry of Education and Science ? GEL 396,8 million;
Ministry of Culture, Protection of Monuments and Sport ? GEL 57 million;
Ministry of Refugees and Accommodation ? GEL 50 million;
Ministry of Agriculture ? GEL 43,6 million;
Ministry of Environment ? GEL 31,4 million;
Office of the State Minister for Conflict Resolution Issues ? GEL 470,000;
Office of the State Minister for Coordination of Reforms ? GEL 440,000;
Office of the State Minister for Euro-Atlantic Integration Issues ? GEL 968,000;
Office of the State Ministry for Civil Integration Issues ? GEL 200,000.

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