2008 State Budget Revised
Parliament approved with 153 votes amendments to the 2008 state budget, envisaging an increase in expenditures by GEL 216 million.
Nika Gilauri, the finance minister, said that the increase in budget spending was made possible by additional revenue sources, including GEL 44 million from privatization. The economic growth target was revised and set at 7.5%, up from 6%, and projected GDP was set at GEL 19.7 billion. The annual inflation target remained at 8%.
The budgetary amendments will mean the Ministry of Labor, Healthcare and Social Welfare receiving an additional GEL 52.2 million. This will be spent on raising the minimum monthly pension from the current GEL 55 to GEL 70, starting from April 1.
GEL 24.2 million will be allocated to the Ministry of Refugees and Accommodation to increase monthly allowances for internally displaced persons to GEL 22 and GEL 28, depending on their place of residence.
The Ministry of Agriculture will receive an additional GEL 29.2 million for the purchase of agricultural machinery and diesel fuel for farmers and the Ministry of Energy – GEL 55.9 million.
GEL 33.7 million will be allocated for the implementation of various investment projects in the regions, while GEL 7.5 million will be directed to supporting water distributing companies in the provinces.
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. Funding for the Education Ministry will increase by GEL 800,000.
The budgetary amendments also cover recently set up state ministries. The State Ministry for Regional Issues will receive GEL 2.2 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.
The amendments also cover costs to be incurred with a planned eurobonds issue. JP Morgan and UBS have been selected to organize Georgia’s first-ever eurobonds issue worth USD 500 million this April.
