Georgia’s GDP Will Reach 57.2 Billion Gel This Year – Minister of Finance

Minister of Finance Lasha Khutsishvili presented the draft budget adjustment for 2021. According to him, according to the updated forecast, Georgia's GDP should increase by 7.7% this year and its size should reach 57.2 billion GEL.

At current prices in 2020, the country’s gross domestic product was GEL 49.4 billion, thus increasing the nominal GDP size by GEL 7.8 billion, or 16%. The real increase in this should be 7.7%. This means that against the background of high inflation, the country's GDP deflator will also increase.

According to the Minister of Finance, this year's budget deficit will be reduced from 7.5% to 6.9%. The volume of public debt decreases from 60% to 54.6%.

 

The government expects tax revenues to increase by GEL 720 million this year, while the overall expenditure part of the budget will increase by GEL 1.1 billion to GEL 19.5 billion. According to individual ministries, the largest amount will be added to the Ministries of Health and Agriculture.

 

The increase in funding for specific ministries and programs is as follows:

 

• Additional GEL 446 million is spent on healthcare;
• GEL 75 million will be spent on doubling child social assistance;
• Additional GEL 35 million will be spent on IDP accommodation;
• Additional 177 million GEL will be allocated for agricultural programs;
• Additional GEL 55 million will be allocated to support the economy;
• An additional GEL 220 million will be spent on improving municipal infrastructure;
• Education funding increases by GEL 40 million;
• Funding for sports will increase by 30 million GEL;
• The budget of the Ministry of Defense will be increased by 30 million GEL.