Budgetary Amendments Proposed

The government has submitted a budgetary amendment to Parliament for consideration envisaging an increase in expenditure by GEL 255.4 million.

The amendment will reflect an additional GEL 340 million in foreign grants as part of aid from donor organizations and governments after the August war with Russia. The amendment also envisages cutting funding for some ministries and redirecting it to reconstruction efforts, according to the document submitted to Parliament.

The bulk of the additional funding will go to the Ministry of Defense (MoD) – GEL 150 million bringing total 2008 defense funding up to GEL 1.545 billion.

The government’s document submitted to Parliament reads that the additional funds for the MoD will be used for “reconstruction of the infrastructure damaged” in the war.

GEL 100 million will go to the Ministry of Internal Affairs (MIA), bringing the MIA’s 2008 funding to GEL 740 million.

GEL 107.5 million will be allocated, according to the draft, to rehouse people displaced as a result of the war.

GEL 21.5 million will be allocated for the grape harvest, in particular, to subsidize the price of grapes sold by farmers to factories.

GEL 14 million will be allocated to the Ministry of Education; part of this sum will be used for the reconstruction of schools damaged in the war. 

GEL 16 million will be allocated to the Ministry of Labor, Healthcare and Social Welfare to cover the cost of medical treatment of those hurt in the war.

GEL 35 million will be allocated for “infrastructure development projects” in the capital city, Tbilisi.

The funding of several ministries will be cut, including the Energy Ministry – by GEL 12.2 million; Finance Ministry – by GEL 4 million; Ministry of Culture, Protection of Monuments and Sports – GEL 3 million; Foreign Ministry – GEL 1.3 million; Ministry of Environment – GEL 1.1 million. Funding for Parliament will also be reduced by GEL 2 million.

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