Parliament Approves Increase in State Expenditure

Parliament approved the government?s proposal to increase 2007 state spending by GEL 431 million in a repeat vote on September 26.

The proposal fell two votes short of the 111 needed for endorsement on September 25. Lawmakers from the ruling party, however, blamed the failure on technical problems involving a digital voting system break-down. The proposal was finally approved by 140 to nine votes on Wednesday.

As a result of the recent increase, total 2007 expenditure is at GEL 5.1 billion (over USD 3 billion) and budgetary revenue stands at GEL 4.7 billion (USD 2.8 billion).
 
The lion?s share of the extra funds, GEL 316 million (about USD 190 million) will be allocated to the Ministry of Defense. As a result, total defense spending for 2007 will exceed GEL 1.271 billion (approximately USD 765 million).

Another major beneficiary of the increased state expenditure will be the Interior Ministry, which will receive an additional GEL 51 million (about USD 30.7 million), out of which GEL 11.5 million (about USD 6.9 million) will be allocated to the Border Police and GEL 125,000 (USD 75,300) to the counter-intelligence department.

Additional funding will also be allocated to:
 
Ministry of Justice ? GEL 11.8 million on repair and construction of prisons;
Ministry of Agriculture ? GEL 5.5 million on grape harvesting;
Ministry of Culture and Sport ? GEL 4.7 million;
The Central Election Commission ? GEL 3 million;
The South Ossetian provisional administration ? GEL 767,000;
Funding of infrastructure repair projects in the regions ? GEL 40.0 million.

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