The Georgian parliament unanimously approved on May 11 with its first reading a new rule on state financing for political parties.

As a result, starting from October 1, 2007, when the proposal goes into force after it is approved with second and third readings, major political parties will receive increased funding from the state budget.

According to the proposal each party, which clears a 4% threshold in parliamentary elections and a 3% threshold in local self-government elections, will receive GEL 150,000 (close to USD 90,000).

The ruling National Movement party, as well as opposition New Rights, Industrialist, Labor, Freedom, Republican and Conservative parties are eligible for such funding.

Beside this guaranteed GEL 150,000, parties which nominate up to 50 candidates for Parliament through the proportional, party list election system, will receive GEL 600 per candidate. Parties which win over 50 seats in Parliament will receive GEL 200 per seat.

In addition, a party which garners over 200,000 votes will receive GEL 1 per vote and if a party garners less than 200,000 votes it will receive GEL 1.5 per vote cast for this party.

The draft law also proposes to ban parties from receiving financial donations from anonymous sources.