The Budget and Finance Committee approved the revised draft State Budget 2019

08 Nov 2018
The Budget and Finance Committee approved the revised draft State Budget 2019

The Committee discussed the revised draft State Budget 2019 and the Main Data and Directions of the Country for 2019-2020.

The Chair, Irakli Kovzanadze noted that the submitted version shares the remarks by the Committees: incomes are increased with 275 ml GEL and the expenditures – with 268 ml GEL. “Assignments achieve 12 bl 997 ml GEL – almost 13 bl. These are the highest figure in history of independent Georgia. There are the programs with increased financing: social protection, healthcare, education, defense and various programs of Economic Ministry. Besides, 69 500 000 GEL is defined for vulnerable families and 144 000 children will receive 50-GEL allowance. The secondary version provides economic growth parameters unchanged”.

According to the reporter, Deputy Finance Minister, Giorgi Kakauridze, after the Committee hearings the IFM mission served the visit to Georgia to participate in consideration of the macro-economic parameters serving the basis for the budget 2019. “We have communicated the main parameters for 2019: economic growth – 4.5%; GDP devaluation – 2.5%; inflation – 3.0%, budget deficit – 2.6% with IMF mission which accomplished program overview in October”, - he stated.

Revenues to the budget are increased compared to the initial version with 357 ml GEL, including: taxes – with 80 ml GEL; grants – 102 ml GEL; credits – 145 ml GEL, including budgetary allowance – 90 ml GEL. Payments to the budget are also increased with 268 ml GEL, including: 50-GEL allowance for socially vulnerable children (20 GEL in cash and 30 GEL in food voucher) – increased with 70 ml GEL; equipment for Defense Ministry – 92 ml GEL; 10 ml GEL extra for credit warranty scheme enactment entrepreneurship development program constituting 20 ml GEL in total; gas supply budget increased with 10 ml GEL constituting 40 ml GEL in total; environmental and agricultural programs increased with 34 ml GEL, including: combating stink bug – 10 ml GEL.

Providing hereof macro-economic parameters, tax incomes may be implemented in excess in 2018 and thus, the updated forecast constitutes 10 500,0 ml GEL”.

The Committee discussed the Bill on Health Care and the Bill on Rights of the Patients, aiming at creation of the legal environment oriented to the needs of the country to facilitate to palliative and hospice care, healthcare and fundamental human rights in high standard. Costs for adoption of the Bills are covered within the sub-program 35 03 03 05 from the assignments of the Ministry of IDPs. The events provided in budget 2019 are envisaged under the sub-program – incurable patients’ palliative care within 3,000,0 GEL, hospice care may entail change of the sub-program.

The Committee approved the Bills and discussed with the II reading the Bill on Tax Code creating the preferential taxation regime for e-engine busses and mini vans.

According to Archil Talakvadze, it will facilitate to increase of the number of e-engine vehicles. The Bill serves for growth of green economy and sustainable development which are key directions of EUAA.

The Committee discussed and approved the documents on: Multilateral Convention on Establishment of the Remedies Associated with the Tax Agreement in view of Elimination of Income Transmission and Reduction of Taxable Base; Loan Agreement between KFW, Frankfurt am Main and Georgia (Adjara Villages water supply and sewerage program); Loan Agreement between KFW, Frankfurt am Main and Georgia (policy-based loan); Credit Agreement between French Development Agency and Georgia; Loan Agreement between Georgia and ADB (East-West Highway Improvement project).

The Committee took note of the efficiency audit report by the Defense Ministry on Provision of Defense Ministry Personnel with Medical Service, introduced by the Head of the Working Group, Paata Kvizhinadze.

Gallery

  • The Budget and Finance Committee approved the revised draft State Budget 2019, November 8, 2018
  • The Budget and Finance Committee approved the revised draft State Budget 2019, November 8, 2018
  • The Budget and Finance Committee approved the revised draft State Budget 2019, November 8, 2018
  • The Budget and Finance Committee approved the revised draft State Budget 2019, November 8, 2018
  • The Budget and Finance Committee approved the revised draft State Budget 2019, November 8, 2018
  • The Budget and Finance Committee approved the revised draft State Budget 2019, November 8, 2018