MPs Discuss Budgetary Amendments

The state budget for 2008 will increase by GEL 323 million, amounting to GEL 7.2 billion, with the increase mostly coming from foreign grants, Finance Minister Nika Gilauri said during discussions on the draft budget in Parliament. 

Gilauri said that the key goal of the budgetary amendments was to reconstruct damaged infrastructure and to assist the victims of Russian aggression. 

Hence, the budgetary sums will be distributed as follows:

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 additional funds for the MoD will be used for “reconstruction of the infrastructure damaged” in the war and for increasing salaries.

GEL 100 million will go to the Ministry of Internal Affairs (MIA), bringing the MIA’s 2008 funding to GEL 740 million. The additional funds will be used for implementing security measures in the country.

GEL 119.5 million will be allocated to rehouse people displaced as a result of the war.

GEL 27.5 million will be allocated for the grape harvest, in particular, to subsidize the price of grapes sold by farmers to factories. GEL 9 million out of this sum will be allocated to the Ministry of Agriculture, while GEL 18.5 million will go towards funding a cheap credit program.

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, for granting salaries to the teachers displaced from the conflict area and other educational measures.

GEL 18 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 34.8 million will be allocated for “infrastructure development projects” in Tbilisi.

GEL 25 million will be allocated to the Energy Ministry to purchase fuel reserves for electricity generation;    

GEL 11.8 million will be allocated to the Ministry of Refugees and Accommodation;

GEL 591,000 will be allocated to the Central Election Commission to fund parties boycotting Parliament.

The funding of several ministries will be cut, including the Ministry of Environment – by GEL 350,000; Finance Ministry – GEL 4 million; Ministry of Culture, Protection of Monuments and Sports – GEL 1 million; Justice Ministry – GEL 1.7 million; Parliament – GEL 2 million; Foreign Ministry – GEL 1.3 million; the Abkhaz government-in-exile – GEL 950,000; The president’s administration – GEL 700,000; Government’s chancellery – GEL 394,000; subsidizing water companies – GEL 500,000; measures to pay public debt – GEL 10 million.

The finance minister did not rule out that the draft budget might be amended again before its final approval.

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