2008 Budgetary Amendments Proposed

Parliamentary committees began consideration of draft amendments to the 2008 state budget, envisaging an increase in revenues by GEL 184 million and expenditure – by GEL 200 million.

Papuna Petriashvili, the deputy finance minister, said that the current increase in budget spending was made possible by additional revenue sources, including GEL 44 million from privatization.

The budgetary amendments will mean the Ministry of Labor, Healthcare and Social Welfare receiving an additional GEL 52.2 million. The deputy finance minister said this would be spent on raising the minimum monthly pension from the current GEL 55 to GEL 70, starting from April 1.

The Ministry of Agriculture will receive an additional GEL 29.2 million for the purchase of agricultural machinery and diesel fuel for farmers.

The Ministry of Energy will receive an additional GEL 51.2 million, which, according to the deputy finance minister, will go on soft loans to gas distributing companies to prevent an increase in gas tariffs. The Ministry of Energy declined to comment. Earlier it was reported that Azerbaijan intended to increase the price of gas for Georgia from USD 120 to USD 190 per 1,000 cubic meters. Georgian officials, however, denied this. Russia, the main supplier to Georgia, charges USD 235.

The Ministry of Culture and Sports will receive an additional GEL 1.5 million. GEL 1 million will be spent on organizing so-called youth patriotic camps, while the remainder will be allocated for the implementation of a program on protecting cultural heritage.

The draft budgetary amendments also cater for new state ministries recently set up. The State Ministry for Regional Issues will receive GEL 1.2 million; the State Ministry for Diaspora Issues – GEL 700,000; and the State Ministry for Reintegration Issues [formerly the State Ministry for Conflict Resolution Issues] – GEL 1 million.

Parliament is expected to vote on the proposed amendments before March 12.