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2009 Draft Budget Proposed
Civil Georgia, Tbilisi / 9 Oct.'08 / 23:12

A 2009 draft budget, which has been submitted by the government to Parliament for consideration, sets revenue at GEL 5.3 billion and expenditure at GEL 4.9 billion.
 
The government stressed it was an initial draft, liable to amendment.

The draft budget, which is posted on the parliament’s website, says nothing about the forecasted 2009 inflation rate, the economic growth rate or GDP.

Prime Minister Lado Gurgenidze said on October 8 that “no significant economic growth” was expected in 2009; he added that “active work is underway with donors to clarify what particular funds will be allocated by them and where these funds will be directed to.” 
 
He said that significant budgetary funds would be directed towards rehabilitation of the war-affected areas and the creation of a stable economic environment in the country. 
 
According to the proposed draft, Defense Ministry funding is set at GEL 950 million.

Currently, 2008 defense spending is set at GEL 1.395 billion; the figure, however, will go up when Parliament approves an amendments to the 2008 state budget envisaging an additional GEL 150 million for the Ministry of Defense. The amendment is expected to be approved on October 10.

Initial defense spending for 2008 was set at GEL 1.1 billion; the figure, however, increased as a result of several amendments in the course of the year.

A breakdown of funding for individual ministries for 2009 is as follows:

Ministry of Labor, Healthcare and Social Welfare – GEL 1.391 billion;
Ministry of Finance – GEL 1.212 billion;
Ministry of Defense – GEL 950 million;
Ministry of Education and Science – GEL 523.3 million;
Ministry of Interior – GEL 500 million;
Ministry of Economic Development – GEL 338.7 million;
Ministry of Justice– GEL 157.3 million;
Ministry of Agriculture – GEL 97.4 million;
Ministry of Energy – GEL 77.4 million;
Ministry of Culture and Sport – GEL 70 million;
Foreign Ministry – GEL 66 million; 
Ministry of Environment – GEL 32.8 million;
Ministry of Refugees and Accommodation – GEL 30 million;
State Ministry for Reintegration – GEL 1.3 million;
State Ministry for Euro-Atlantic Integration Issues – GEL 1.1 million;
State Ministry for Regional Management - GEL 1.2 million;
State Ministry for Diaspora Issues – GEL 750,000.
 
According to the 2009 draft budget, the minimal monthly pension will remain at GEL 70, while allowances for internally displaced persons will vary from GEL 22 to GEL 28, depending on their residence. Each displaced person, in addition, will receive GEL 5 per month to partially cover the cost of public utilities.
 
In 2009 the funding of the Georgian parliament will increase to GEL 42.9 million, while the president’s administration will lose GEL 13.4 million. The funding of the government’s chancellery will increase by GEL 2 million, rising to GEL 12 million.
 
The funding of the Central Election Commission will be reduced from GEL 43.9 million in 2008 to GEL 8.4 million in 2009 – taking into account that no elections are scheduled for next year.
 
The Georgian Public Defender’s Office will receive GEL 2 million next year instead of GEL 1.9 million in 2008.
 
The funding of the Georgian Public Broadcaster will increase by GEL 5 million, bringing its total to GEL 25.5 million.
 
The funding of the Georgian Orthodox Church will increase from GEL 9.5 million in 2008 to GEL 25 million next year.

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