MPs Discuss 2007 Draft Budget

The Georgian Parliament launched discussion of the draft budget for 2007, which sets revenues at GEL 3.4 billion (approximately USD 1.9 billion) and expenditures at GEL 3.8 billion (approximately USD 2.1 billion).
 
Finance Minister Lexo Alexishvili, who presented the draft budget to Georgian lawmakers, said on November 21 that ?stable economic development and the improvement of social conditions will be the country?s key priorities? next year.

According to the 2007 draft budget, tax revenues will be GEL 2,8 billion; non-tax revenues GEL 220 million, and foreign grants GEL 240 million.

The government expects GEL 100 million from privatization next year.
 
The 2007 draft budget sets the growth rate for the GDP, which is expected to reach GEL 16 billion, at 7.5%. Alexishvili said that 2006 GDP growth will reach 9%.
 
Russia?s economic embargo on Georgia will slow down the country?s GDP growth in 2007 by 2,5-2,8%, Alexishvili told lawmakers.
 
The draft budget sets the inflation rate at 6% in 2007, although some lawmakers argued at the hearing that an 8% inflation rate would have been a more realistic figure.
 
The Georgian Finance Minister said that although twelve-month inflation was 10,2% at the end of October 2006, the government projects a further decrease of inflation in the remaining two months of 2006, ?hence we expect a one-digit inflation rate by the end of this year.?
 
According to the 2007 draft budget, financing for ministries, which will increase by GEL 43 million compared with 2006, will be as follows:
 
Ministry of Labor, Health Care and Social Welfare – GEL 999.7 million;
Ministry of Defense – GEL 392.5 million;
Ministry of Finance ? GEL 751,5 million;
Ministry of Economic Development ? GEL 456,8 million;
Ministry of Energy ? GEL 111,6 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.
 
A further GEL 496 million will be allocated on road construction and rehabilitation.
 
According to the draft budget, GEL 250 million is set aside for the payment of Georgia?s foreign debt, and GEL 74 million will be allocated for the payment of internal debt.

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