MPs Discuss Budgetary Amendments

The 2008 state budget will be increased by GEL 236 million and to GEL 6.9 billion, according to budgetary amendments discussed by Parliament on July 5.

Initially, however, the draft amendment had proposed an increase in spending by GEL 226 million.

As a result of the budgetary amendment, the funding of the Ministry of Defense (MoD) will increase by GEL 295 million to GEL 1.395 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.

At the same time the amendment envisages spending cuts for a number of ministries.
 
The Ministry of Labor, Healthcare and Social Welfare will see its budget cut by GEL 30 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 23 million and there will be GEL 52 million less for servicing foreign debts. GEL 90,000 will be cut from the Ministry of Environment.

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 1.7 thousand will be allocated for various investment projects in the South Ossetian conflict zone.

GEL 46 million will be allocated for the implementation of various investment projects in the regions.

The funding of the Ministry of Refugees and Accommodation will increase by GEL 500,000 to finance rehabilitation of dwelling places for internally displaced persons.

The funding of the Ministry of Economy will increase by GEL 124,000.

The Ministry of Culture and Sports will receive an additional GEL 1.5 million.

Parliament is set to get an additional GEL 1.4 million, and the government’s chancellery GEL 500,000. The government’s reserve fund will also increase by GEL 500,000.

The parliamentary minority has criticized the proposed amendments. MP Giorgi Targamadze of the Christian-Democratic Party, who is parliamentary minority leader, said the budget was non-transparent, as a detailed breakdown of spending had not been provided.

Although he said the parliamentary minority was not against increased defense spending, it was unacceptable to cut funding for the Ministry of Healthcare and Social Issues.

The 2008 state budget was already revised in March, when an additional GEL 216 million in spending was added.