The Committee discussed the Bill on “State Budget of 2020” (with attached documents), “Basic Data and Directions Document for 2020-2023” and the Report of the Government on “Implementation of the State Budget of 2019”.

The rapporteur, Deputy Minister of Finance Giorgi Kakauridze briefed the MPs on the main indicators and parameters of the budget: "We have drafted the state budget of 2020 for 5% economic growth, which is a very ambitious endeavor amid the decreasing trends of the global economy and that of our region. Yet we believe it to be possible”.

According to him, the second important parameter that the budget enshrines is the amount of the budget deficit. "We experience a budget deficit of 2.7%, which means that we have maintained a low deficit rate with no reduction in capital spending, as their limitation would have been reflected in the rate of economic growth thus threatening the 5% economic growth. For economic growth”, - the reporter noted.

Pursuant to Giorgi Kakauridze, the budget 2020 envisages additional 300 million GEL for the improvement of the social system, which will be spent on the following directions:

• Pensions will be increased with 20 GEL, as well as the social allowances for the persons with disabilities under 18 of the I and II groups which will take 220.0 ml GEL. Extra 30 GEL will be allocated for the pensioners over 70 taking 80 ml GEL. At the same time, the rule of regular increase in pension payments will be introduced.
• In view of improvement of the healthcare system, the medical services will be devaluated to at the same time reduce co-participation of the citizens.
• Salaries for the ambulance and rural doctors will be increased with 100 GEL.

As the rapporteur elucidated, the next direction, where significant sums were allocated, is the education system taking 1.8 billion GEL from the combined budget.

• Salaries for the public-school Senior, Leading and Mentor Teachers will be increased with 150 GEL as from October 1, 2019 and with an additional 150 GEL by the new academic year of 2020. The increase in the salaries of the teachers will take over 140 ml GEL;
• Salaries of kindergarten personnel will be increased with 100 GEL as from September 1, 2020 which will take 15 ml GEL;
• More than 280 ml GEL will be allocated for development of educational infrastructure;

As per the Deputy Minister, as from July 1, 2020, the salaries of the fire rescuers, policemen and equalized persons will as well be increased to take 50 ml GEL. 3.7 bl. GEL will be directed for infrastructural projects and 240.0 ml GEL will be allocated for petty and average business facilitation.

According to him, the budget income forecast for 2020 is defined with 14 040 ml GEL.
Allocations provided for by the large consumers are distributed as follows:

• Funding of the Ministry of IDPs from the Occupied Territories, Labor, Health and Social Affairs increases by GEL 378.6 ml GEL compared to the 2019 plan and amounts to 4 347 million GEL.
• Funding for the Ministry of Regional Development and Infrastructure takes 2 071.6 ml GEL, which is 71.6 ml GEL higher than in 2019.
• Funding of the Ministry of Education, Science, Culture and Sport is defined to increase from 132.4 ml to 1 636.0 ml GEL as compared to the approved plan of 2019.
• 364.0 ml GEL is allocated for the Ministry of Economy and Sustainable Development.
• Funding of the Ministry of Finance of Georgia amounts to 93.0 ml GEL.
• 203 ml GEL is allocated for the Ministry of Justice.
• 159 ml GEL is envisaged for the Ministry of Foreign Affairs.
• 880.0 ml GEL goes to the Ministry of Defense, including salary increase for military personnel.
• 170 ml GEL is allocated for the Ministry of Internal Affairs.
• Funding for the Ministry of Environment Protection and Agriculture of Georgia amounts to 353.0 ml GEL.

According to the rapporteur, about 58 ml GEL has been allocated for environmental protection programs entailing:

• 400 000 GEL for biodiversity,
• Over 20.6 ml GEL for environmental monitoring,
• 13 ml GEL for establishment and management of protected areas system,
• 13.780 ml GEL for establishment and management of forestry system (increased by GEL 1.9 million),
• 875 000 GEL for the National Wildlife Agency,
• 3 ml GEL for the State Program for Sustainable Land Management and Land Use Monitoring.

“As of 2016, the budget of the Ministry of Environment was about 31 ml GEL. During this period, it has increased with about 20 ml GEL, however, it is not enough. There are a number of grave issues and challenges that need additional funding”, - the Chair of the Environmental Protection and Natural Resources, Kakhaber Kuchava commented.

The committee endorsed the budget.