2007 State Budget Approved

Parliament approved the 2007 state budget on December 29 with 150 votes to 9.

The opposition lawmakers refused to support the document, criticizing it as non-transparent.

The 2007 budget sets revenues at GEL 3.7 billion (approximately USD 2.1 billion) and expenditures at GEL 4 billion (approximately USD 2.3 billion).

The document sets the growth rate for the GDP, which is expected to reach GEL 16 billion, at 7.5% and inflation rate at 6%. Opposition lawmakers say that the forecasted inflation rate is unrealistic against the background of anticipated price hikes on gas and electricity.
 
The government submitted a revised draft of the 2007 state budget to the Parliament on December 28.

An initial draft discussed by lawmakers in November called for GEL 3.4 billion in revenues and GEL 3.8 billion in expenditures.

Major amendments in the draft involved an increase in funding for the Defense Ministry from the initially proposed GEL 392.5 million (about USD 228,1 million) to GEL 513.2 million (about USD 298,3 million), and for the Energy Ministry from an initial GEL 111.6 million (about USD 64.9 million) to the current GEL 217.2 (about USD 126.3 million).

The additional GEL 105.6 million for the Energy Ministry is the result of the government?s intention to allocate credit for gas distributing companies in Georgia to prevent a swift gas price hike for households starting from January 1, 2007.

The revised budget, which was approved by the Parliament, also outlines the funding of other ministries as follows:

Ministry of Labor, Health Care and Social Welfare – GEL 916 million, down from the initially proposed GEL 999.7 million;
Ministry of Finance ? GEL 765.6 million, instead of GEL 751,5 million;
Ministry of Economic Development ? GEL 419.5 million, instead of 456,8 million;
Ministry of Justice? GEL 117 million, instead of GEL 92,2 million;
Foreign Ministry ? GEL 49.8 million, instead of GEL 59,9 million;
Interior Ministry ? GEL 297,7 million, instead of GEL 245,7 million;
Ministry of Education and Science ? GEL 389.3 million, instead of GEL 396,8 million;
Ministry of Culture and Sport ? GEL 65.3 million instead of GEL 57 million;
Ministry of Refugees and Accommodation ? GEL 44.1 mln, instead of GEL 50 mln;
Ministry of Agriculture ? GEL 47.9 million, instead of GEL 43,6 million;
Ministry of Environment ? GEL 34.9 million, instead of GEL 31,4 million;

Office of the State Minister for Conflict Resolution Issues ? GEL 503 000, instead of GEL 470,000

No changes have been made in the funding of the following structures:

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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