Budgetary Amendments Approved

Parliament approved on October 10 with 114 votes amendments to the 2008 state budget, envisaging an increase in expenditure by GEL 325.5 million. As a result, the 2008 state budget amounts to GEL 7.2 billion.

Initially, it was planned to increase expenditure by GEL 255 million and then by GEL 323 million; but, finally the figure agreed was GEL 325.5 million.

The increased funds will mostly be directed towards rehabilitation of war-affected areas.

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.

GEL 170 million will be allocated to re-house people displaced as a result of the war.

GEL 48 million will be allocated to the president’s and government’s reserve funds to cover unexpected expenses within the next three months.   

GEL 28.5 million will be allocated for the grape harvest, in particular, to subsidize the price of grapes sold by farmers to factories. GEL 9 million of this sum will be allocated to the Ministry of Agriculture, while GEL 9.5 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 salaries to teachers displaced from the conflict area and other educational measures. 

GEL 22 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 Tbilisi, while GEL 1.8 million goes to financial aid to various municipalities.

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

GEL 11 will be allocated to the Ministry of Refugees and Accommodation; part of this sum, GEL 9 million, will be directed towards providing IDPs with consumer items, while GEL 2 million will be used for rehabilitation of their places of residence.

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; Economy Ministry – GEL 2 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 the public debt – GEL 10 million.

 The 2008 state budget has also reduced funds for the Stable Development Fund by GEL 191.9 million. 

This is the third time rhe 2008 state budget has been amended.

Meanwhile, Parliamentary Chairman Davit Bakradze said in Parliament on October 10 that discussions on the 2009 state budget would start in November.

He said that the discussions had been postponed due to a donor conference planned for late October, which should ascertain the amount of post-war assistance for Georgia.

“The government has also requested time to observe the post-war dynamics of economic development and to calculate the amount of revenues expected next year,” Bakradze said.

He said the draft budget should reflect social guarantees and “our pre-election promises” as well.  

According to the 2009 draft budget, the minimal monthly pension will remain at GEL 70, while allowances for internally displaced persons will vary from GEL 22 to GEL 28, depending on places of residence. Each displaced person, in addition, will receive GEL 5 per month to partially cover the cost of public utilities.

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