The Government has submitted to the Parliament initial draft of 2014 state budget, which sets revenues at GEL 7.379 billion, down from this year’s targeted GEL 7.42 billion, and expenditures at GEL 7.482 billion, up from this year’s projected GEL 7.24 billion.

The draft targets GEL 6.95 billion in tax revenues, up by GEL 30 million from this year’s target. GEL 129.8 million is expected from foreign grants and GEL 300 million from “other” sources, including GEL 100 million from fines.

The draft of 2014 projects 5% economic growth next year; 6% growth still remains official target for this year, although even government ministers acknowledge that it will be unlikely to meet the target with real GDP growth for the first eight months only 1.6%.

Breakdown of funding per ministry, according to the proposed draft of 2014 budget, is as follows:

• Ministry of Healthcare and Social Protection – GEL 2.7 billion (2013 – GEL 2.345 billion; 2012 – GEL 1.821 billion);
• Defense Ministry – GEL 660 million (same as in 2013; figure stood at GEL 730 million in 2012 and at GEL 711 million in 2011);
• Interior Ministry – GEL 570 million (2013 – GEL 570 million; 2012 – GEL 587.8 million; 2011 – GEL 568 million);
• Ministry of Regional Development and Infrastructure – GEL 890.8 million (2013 – GEL 928.5 million; 2012 – GEL 663 million);
• Ministry of Education and Science – GEL 764.3 million (2013 – GEL 673.2 million; 2012 – GEL 627.3 million);
• Ministry of Agriculture - GEL 290 million (2013 – GEL 241 million; 2012 – GEL 228.3 million);
• Finance Ministry – GEL 100 million (same as in 2013; GEL 105.2 million in 2012);
• Ministry of Economy and Sustainable Development – GEL 25 million (2013 - GEL 55 million; 2012 – USD 183.5 million);
• Ministry of Energy – GEL 103.6 million (2013 – GEL 118.7 million; 2012 – GEL 278.9 million);
• Justice Ministry - GEL 50 million (2013 – GEL 71.4 million; 2012 – GEL 59.2 million);
• Prison system ministry – GEL 155 million (2013 – GEL 174.3 mln; 2012 – GEL 134 million);
• Foreign Ministry - GEL 80 million (2013 – GEL 80 mln);
• Ministry of Culture and Protection of Monuments – GEL 80 million (same as in 2013 and GEL 83.3 million in 2012);
• Ministry of Sport and Youth Affairs - GEL 50 million (2013 – GEL 47.2 million; 2012 – GEL 72.4 million);
• Ministry of Environment Protection - GEL 27.8 million (2013 – GEL 25.9 million; 2012 – GEL 16.8 million);
• Ministry for Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees - GEL 48 million (same in 2013; GEL 37.4 million in 2012);
• Office of the State Minister for Reintegration – GEL 1.35 million (same was in 2012 and GEL 1.45 million in 2012);
• Office of the State Minister for European and Euro-Atlantic Integration – GEL 2.3 million (same as in 2013 and GEL 2.49 million in 2012);
• Office of the State Minister for Diaspora Issues – GEL 850,000 (same as in 2013 and GEL 1.75 million in 2012).

According to the draft, Autonomous Republic of Adjara and other local self-government bodies will see increase in funding from the central budget from this year’s GEL 769.7 million to GEL 795.9 million.

But funding of the Tbilisi municipality will be decreased by GEL 50 million to GEL 398 million.

Funding cut triggered Tbilisi Mayor Gigi Ugulava’s protest, condemning the move as “punitive measure” as President Saakashvili’s UNM party remains in control of the capital city’s executive government.

According to the draft budget, next year funding of the Parliament will be decreased by GEL 2 million to GEL 54 million.

President’s administration will receive GEL 9 million (2013 – GEL 9.96 million).

Next year the President’s discretionary reserve fund will be halved to GEL 5 million, while the government’s similar fund will remain unchanged at GEL 50 million.

GEL 250 million will be allocated for various regional projects that is almost by GEL 200 million less than this year’s funding.

Funding of the rural development program will remain unchanged at GEL 50 million.

The Central Election Commission will receive GEL 54.5 million next year of which GEL 28 million will be allocated for holding local elections.

Funding of Geostat, state statistics office, will significantly increase from current GEL 4.5 to GEL 15 million with GEL 8.8 million to be spent on population census planned in 2014.

Funding of the public defender’s office will increase by GEL 280,000 to GEL 2.38 million. 

Funding of Georgian Public Broadcaster (GPB) will also increase from current GEL 31.8 million to GEL 38 million.

Like in 2013, next year the Georgian Patriarchate will again receive GEL 25 million from the state budget.

The government announced this week about possible pay rise for judges, but the proposed budget does not envisage any increase of funding for the judiciary system. Funding for the Supreme Court and common courts, as well as of Constitutional Court, remains unchanged (GEL 5.54 million; GEL 34.9 million and GEL 2.6 million, respectively).

The proposed draft budget is subject to revision and may undergo changes before it is confirmed by the Parliament, expected by the end of this year.