News, Politics

Failing revenues forces major shifts in budget

by | Dec 7, 2012

TBILISI, DFWatch — The revenues into Georgia’s state accounts have decreased by USD 50.5 million lari compared to the budget. For this reason, priorities will be shifted until next year. According to the 2012 budget, revenues should have been USD 5 billion – 8 242 000 000 lari, but in reality it was 8 158 000 000 lari.

Finance Minister Nodar Khaduri explains that the drop in income is caused by changed exchange rate for lari and because of repayment of debt to Kazakhstan and Turkmenistan.

The Minister explains that about USD 20 million was allocated for compensation and rehabilitation work of the loss affected by the hailstorm last summer. The money was allocated from the amount of foreign liabilities; USD 10 million was allocated for funds of implementation programs in the regions, while USD 3.6 million was directed to the government’s reserve fund.

By the end of 2012, several state bodies will get its funding cut: the Ministry of Justice, National Security Council, and Foreign Affairs Ministry. The amount for foreign liabilities will also reduce. Despite this policy, the financing for general educational schools will increase by nearly USD 10.2 million.

“By above mentioned amount of money, the deficit will be covered. This was done by reducing the financing for general educational schools in 2012 and by increasing rehabilitation work on schools, to equip them with computers, which has exceeded the amount defined by the 2012 budget.”

There is USD a 1.4 million increase in financing for education, which will be spent on financing students from families affected by the hailstorm last summer.

USD 30 million will be spent on purchasing agricultural equipment.

By the end of 2012, the Defense Ministry will receive USD 31 million more than what was defined in the budget.



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