The government has proposed a further increase in state spending for 2007 of GEL 350 million (about USD 212 million), with the lion’s share again going on defense.

If approved by Parliament, this will be the second amendment to the 2007 state budget in less than a month and the third one this year.

On September 26, the legislative body passed amendments increasing expenditures by GEL 431 million, making total expenditures GEL 5.1 billion (over USD 3 billion).

Of the proposed GEL 350 million incease, GEL 224 million is to be set aside for the Ministry of Defense (MoD), Papuna Petriashvili, the deputy finance minister, said on October 16.

If approved, the already record high defense budget will reach GEL 1.495 billion (about USD 906 million).

The original 2007 defense budget was set at GEL 392.5 million; the figure, however, exceeded GEL 1.271 billion (approximately USD 765 million) as a result of two budget revisions in June and September.

Meanwhile, the government has also proposed a draft state budget for 2008 which envisages GEL 922.1 million (about USD 558 million) for the MoD. The Ministry, however, wants more funding for next year.

Vera Dzneladze, deputy defense minister, told lawmakers from the parliamentary committee for defense and security at a hearing on October 16, that the MoD wanted at least GEL 1.1 billion.

The Ministry of Labor, Healthcare and Social Welfare is also due to gain from the proposed changes to the 2007 budget. The ministry is to receive an extra GEL 92 million, which will be directed towards the implementation of a one-time social assistance program.

GEL 28 million also to go to the Ministry of Agriculture and GEL 6 million to the Ministry of Justice, according to the draft amendments to the 2007 state budget.