Budgetary Amendments Approved
Parliament passed with 84 votes to eight amendments to the 2008 state budget on July 15, envisaging an overall increase in state spending by GEL 236.545 million, while at the same time cutting spending for a number of specific ministries.
As a result of the budgetary amendments, 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. The amendment will bring the MIA’s total funding for 2008 to GEL 640 million, compared to GEL 467.4 million in 2007.
The Ministry of Labor, Healthcare and Social Welfare will see its budget cut by GEL 30 million. 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 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 amendments as non-transparent.
The 2008 state budget was already revised in March, when an additional GEL 216 million in spending was added.
