The government has submitted the initial version of Georgia’s 2027 state budget to Parliament. According to the Finance Ministry, expenditure is projected at GEL 37.562 billion, almost GEL 1.93 billion higher than the 2026 forecast. Real economic growth is projected at 5%, with GDP expected to reach GEL 126.4 billion, while inflation is forecast to return to the 3% target.
The budget allocates an additional GEL 830 million to healthcare and social programs. Under the pension indexation system, pensions will rise by GEL 60 to GEL 555 for people aged 70 and over, and by GEL 20 to GEL 390 for those under 70. Pensions in highland settlements will exceed GEL 665 and reach GEL 468, respectively. Healthcare funding will increase by more than GEL 127 million, while GEL 400 million will be added to education spending. Public sector base salaries are also planned to rise by 8.4%, requiring an additional GEL 395 million for the wage fund.
More than GEL 8.43 billion is planned for capital and infrastructure spending. This includes GEL 2.7 billion for municipal projects and GEL 1.33 billion for road infrastructure, including GEL 723 million for highways. The budget also provides GEL 125 million for the Anaklia port, GEL 125 million for Tbilisi Metro modernization, GEL 250 million to increase Georgian Railway capacity and GEL 60 million to complete Kutaisi Airport’s new runway.
Other allocations include GEL 800 million for education infrastructure, GEL 404 million for energy projects, GEL 432 million for water supply and GEL 268 million for housing internally displaced people. Capital spending by law enforcement agencies is set at GEL 701 million. The initial budget will now be reviewed by Parliament’s committees, with revisions incorporated before the final document is expected to be approved in December.
