“It is the second significant change since September introduced to the Budget 2022. The changes envisage the GPD growth from 8,5% to 10%, which in nominal achieves 72 bl. 276 ml GEL; the expenditures are as well increased by 507 ml GEL and shall be distributed to the Ministries”, - the Chair, Irakli Kovzanadze stated as the Committee approved the Draft State Budget 2022.
The First Deputy Finance Minister, Giorgi Kakauridze elucidated that in line with high economic growth, the Draft specifies incomes and expenses of the budget. According to him, the changes update the macroeconomic forecasts.
“By the changes introduced in September, we increased the economic growth to 8,5, though according to the 10-month data, we even achieved 10%. Thus, the Ministry made a decision to also change the real economic growth forecast. At that, the changes correct the GDP devaluation based on the preceding factors. According to the 11-month data, the tax incomes are increased by 526 ml GEL, where 492 ml GEL is a share of the State Budget and 34 – of the municipal budget”, - he stated.
In total, incomes are increased by 596 ml GEL to be distributed to the Ministries. The change covers three main Ministries – Economy and Sustainable Development; IDPs, Labor, Health and Social Protection; and Culture, Sports and Youth. The assignments for the Economic Ministry are increased by 330 ml GEL, where 230 ml GEL will be consumed to ensure uninterrupted gas supply of the population and 100 ml GEL – for additional works. The assignments for the IDPs Ministry are increased by 95 ml GEL, where 55 ml GEL will be consumed on the accommodation of IDPs and 40 ml – for universal healthcare program. The assignments for the Culture Ministry are increased by 70 ml GEL to constitute 470,8 ml GEL – the extra funds will be consumed on tourism. The State Special Protection Service will have an extra 2,4 ml GEL for the construction of the training infrastructure. Providing the deficit in municipal incomes, the special transfer for municipalities is increased by 10 ml GEL.
The Committee approved the Draft.
