Parliament Endorsing Draft State Budget 2021
By 85 votes, the Parliament passed the updated version of the draft law "On the State Budget of Georgia for 2021".
According to Giorgi Kakauridze, First Deputy Minister of Finance, the economic growth rate in the document is 7.7%, based on recent favorable trends.
"It's critical that the International Monetary Fund verified our projection a few days ago, and their new forecast is similar", - Giorgi Kakauridze said.
He claims that the anticipated high economic growth will allow to enhance budget revenues.
The budget increase has three main goals, according to the First Deputy Minister of Finance: decreasing the deficit, fostering economic recovery, and controlling COVID-19 and related health initiatives.
With the revisions to the state budget for 2021, the deficit is lowered from 7.6% to 6.9%, the government debt is reduced to 54.6 percent, overall budget receipts grow by 1,174.9 million GEL to 17,933.1 million GEL, and budget allocations total 19,498.8 million GEL.
In comparison to the previously authorized budget, the sum allotted to the Ministry of Health has grown by 600 million GEL. The budget for COVID-19 management will rise by 446 million GEL to 846 million GEL, including around 150.0 million GEL for the cost of procuring the vaccine required to vaccinate 60% of the population under the COVID-19 vaccination plan.
The Ministry of Economy's assignments have increased by 36.0 million GEL to a total of 642.8 million GEL.
The Ministry of Regional Development and Infrastructure's allocations will increase by 90.0 million GEL over the initial plan for 2021, totaling 2,456.6 million GEL.