Revised 2009 Budget Submitted to Parliament

The government said revised 2009 draft budget is more socially oriented than its initial version, envisaging additional GEL 179 million for various social expenses (last week the government announced additional GEL 169 would be spent on social projects).

The draft budget forecasts 4% GDP growth next year, expected to amount total of GEL 21.5 billion and targeted inflation rate is set at 7%.

A breakdown of funding for individual ministries for 2009 is as follows:

• Ministry of Labor, Healthcare and Social Welfare – GEL 1.494 billion (GEL 1.317 billion in 2008);
• Ministry of Finance – GEL 1.362 billion (GEL 1.899 million in 2008);
• Ministry of Defense – GEL 950 million (GEL 1.545 million in 2008);
• Ministry of Education and Science – GEL 525 million (GEL 467.7 million in 2008);
• Ministry of Interior – GEL 560 million (GEL 740 million in 2008);
• Ministry of Economic Development – GEL 587.2 million (GEL 391.1 million in 2008);
• Ministry of Justice– GEL 58.3 million (GEL 49.5 million in 2008);
• Ministry of Agriculture – GEL 87 million (GEL 86.2 million in 2008);
• Ministry of Energy – GEL 40.3 million (GEL 120.3 million in 2008);
• Ministry of Culture and Sport – GEL 86.3 million (GEL 77.3 million in 2008);
• Foreign Ministry – GEL 70 million (GEL 57.9 million in 2008);
• Ministry of Environment – GEL 37.1 million (GEL 38.5 million in 2008);
• Ministry of Refugees and Accommodation – GEL 30 million (GEL 96.9 million in 2008);
• State Ministry for Reintegration – GEL 1.3 million (GEL 1.5 million in 2008);
• State Ministry for Euro-Atlantic Integration Issues – GEL 1.1 million (GEL 1.1 million in 2008);
• State Ministry for Regional Management – GEL 1.2 million (GEL 2.6 million in 2008);
• State Ministry for Diaspora Issues – GEL 750,000 (GEL 848 million in 2008);

A new Ministry for Penitentiary and Probation, which will be established next year, will receive – GEL 116.1 million.

Setting up of another new ministry for regional development and infrastructure is also planned, but the proposed draft budget does not envisaging funding of this new ministry, so it will need to be additionally amended.
 
In 2009 the funding of the Georgian parliament will increase up to GEL 42.9 million, while the president’s administration will again receive GEL 16 million. GEL 25 million is envisaged for each – the president’s and government’s reserve funds.

The funding of the Central Election Commission will be reduced from GEL 47.4 million in 2008 to GEL 8.4 million in 2009 – taking into account that no elections are scheduled for next year. This funding also includes a GEL 3.9 million envisaged for funding of the political parties.

The South Ossetian provisional administration will receive GEL 10 million instead of GEL 19 million in 2008.

The Georgian Public Defender’s Office will receive GEL 2 million next year up from GEL 1.9 million in 2008.
 
The funding of the Georgian Public Broadcaster will receive additional GEL 5 million, bringing total funding in 2009 to GEL 25.5 million.
 
The funding of the Georgian Orthodox Church will increase significantly from GEL 9.5 million in 2008 to GEL 25 million next year.