Defense Spending to Go Up by GEL 295 mln

The government has proposed an increase in defense spending by GEL 295 million (about USD 202.8 million).
 
A draft amendment to the 2008 state budget, once approved by Parliament, will bring total funding of the Ministry of Defense (MoD) to GEL 1.395 billion.
 
The Finance Ministry says in the document submitted to Parliament for approval that the extra funding for the MoD will be used for “increasing the country’s defense capabilities and getting closer to NATO standards.”
 
No other details are given in the document. The MoD has declined to comment.
 
Initial defense spending for 2008 was set at GEL 1.1 billion. The figure for 2007 was GEL 1.495 billion.
 
The Ministry of Internal Affairs (MIA) will also benefit from the planned budgetary amendment as an additional GEL 40 million is earmarked for it.
 
If approved, the amendment will bring the MIA’s total funding for 2008 to GEL 640 million, compared to GEL 467.4 million in 2007.
 
The Tbilisi-backed South Ossetian provisional administration, led by Dimitri Sanakoev, will also benefit from the amendment, with its funding going up by GEL 2 million to GEL 19 million for 2008. It received GEL 13 million last year. In addition, GEL 750,000 will be allocated for “various investment projects” in the South Ossetian conflict zone, according to the draft budgetary amendment. 
 
The 2008 state budget, according to the draft amendment, will increase in total by only GEL 226 million.
 
The extra funding for the MoD and MIA will come at the expense of other ministries.
 
The Ministry of Labor, Healthcare and Social Welfare will see its budget cut by GEL 40 million, according to the draft amendment. The Finance Ministry, however, has claimed the shortfall will not affect planned social and healthcare projects.
 
The Energy Ministry will also lose to the tune of GEL 24 million and there will be GEL 59 million less for servicing foreign debts.
 
The economic growth target will also be revised and set at 9%, up from 7.5%, according to the proposed budgetary amendment.

The 2008 state budget has already been revised once in March, when expenditures were increased by GEL 216 million.