State Budget 2013 Meets Pre-election Promises
27 December, 2012
State Budget 2013 Meets Pre-election Promises

The state budget of 2013 cut down administration expenses as much as possible to be socially-oriented and tailored to the pre-election promises of Georgian Dream, political coalition that came to power in Georgia.

New government of Georgia succeeded to approve the main fiscal document of the county for 2013 by December 20, 2012 in line with the budgetary law deadlines and full compliance with the pre-election promises of Georgian Dream political coalition that took the office out of the ex-ruling party of National Movement in this past October.
Economic analysts accentuate that the incumbent government handled with the difficult task to work out the state budget 2013 within the tightest deadlines from October 24 [when the new government was actually approved] to December 20 in order not to violate the budget related legal procedures and, what is very important, to tailor it to the priorities of Georgian Dream instead those of National Movement who drafted the state budget project for 2013 prior Georgian Dream took its office term legally.
Ultimately the income prognosis of the state budget 2013 stands at GEL 8.425 million and the expenditures are capped by GEL 6.920 million. Social-insurance, health-care, education, agriculture, aiding of Involuntarily Displaced People (IDPs), environment and infrastructure development are the priority sectors. Therefore the financing of social and health-care increases by GEL 630 million totally in 2013 compared to 2012. Around GEL 2.473 billion is earmarked to cover all social-and-health-care related costs including pensions. This kind of growth in funding is caused by increased number of people who will get health-insurance from the state as well as increase of pensions. Although the promised increase of pensions as well as social-and-health care packages will be implemented gradually.
“To avoid inflation pressure,” Irakli Lekvinadze, an economic analyst, explains.
Initially the currently active differentiated pension rates fixing GEL 110 for people over 60 and GEL 125 for people over 67 as well as pensions of the first group invalids will be streamlined at GEL 125 since April of 2013; and the subsistence minimum equivalent pensions of GEL 150 will be adopted for all the aged pensioners and first group invalids starting September of the next year. Pension of other invalid categories as well as victims of political repressions and families bereft of breadwinners will also increase since September.
All the citizens of Georgia who are not covered by the state
health-insurance will enjoy the minimal insurance package that provides medicals service in emergency cases. However all of them will enjoy the basic health-insurance package since July that apart of emergency case aid also provides financing for planned surgeries, medical check and diagnostic etc. The socially vulnerable category will receive doubled assistance since July again.
Education and science ministry will be financed by GEL 670 million that envisages increased voucher-based funding to schools mainly that lays ground to increase of salaries to teachers. Financing of the educational grants for students and programs supporting science also enhanced.
Agriculture ministry gets GEL 241 million that means almost 61% of growth [a GEL 92.1 million] compared to GEL 148.9 million allocated in 2012.The lion’s share of the funding comes on procurement of agriculture technique like tractors and motor-blocks, as well as on repair of irrigation systems. This financing also envisages tilling of 30 thousand hectare of lands and irrigation of 7 thousand hectares. 500 thousand small farmers will get the state assistance to fund the upcoming spring cultivation works. In addition an Agriculture Fund with GEL 1 billion of budget will be created to channel financing to the agriculture sector apart of the state budget.
The budget of the Ministry of IDPs and Resettlement increase by 92% from GEL 25 million to GEL 48 million and envisages rehabilitation of residential houses of IDPs.
The Ministry of Regional and Infrastructure Development gets GEL 901 million. GEL 501.7 million and 181.9 million out of the figure will finance road and regional municipal infrastructure rehabilitation works respectively. GEL 80 million is allocated to the Ministry of Culture and Monument Protection – not a single museum, theatre or any other state-based cultural establishment will face drop in the budget next year.
Accents in 2013 will fall on clearing the foreign state debt too: GEL 400 million is allocated to this end in the state budget. Nodar Khaduri, Minister of Finances, accentuated that the year of 2013 is quite burdensome from the point of view of clearing foreign-debt related expenditures and promised that other years after 2013 will be less and less encumbering to this end.
Economic analysts approve the state budget 2013 as find it much more transparent, detailed and targeted on programs. The much criticized paragraph of “other expenses” making around 13% of the state budget in previous years and completely non-transparent became clear his time providing full description of expenses it targets on.
“Taking into account that the budget has been shaping out against the backdrop of political battles and clashes [with National Movement] it is pretty well-elaborated, clear, social-care and agriculture oriented as promised before elections,” Soso Archvadze, an economic analyst, said.
Lekvinadze thinks that the financing of priority sectors was increased skillfully at the expense of cutting administration costs: financing of interior and defense ministries decreased by GEL 15.2 million and GEL 30 million respectively. Ministry of Finances also faced a GEL 18.2 million drop in funding. The Presidential and Governmental Funds with traditional funding as GEL 50-50 million each traditionally and enjoying notorious fame of non-transparency also shrunk. The drop referred to the Presidential fund only that gets GEL 10 million next year. Governmental fund retained GEL 50 million. Khaduri explains this by difficulties in monitoring the presidential fund’s outlays.


Other Stories
New type of Churchkhela and Pelamushi may appear on Georgian market
The owner of the only fruit drying factory in Georgia Gia Ghatchava plans to widen his enterprise in 2017 and produce new products.
The first wind power plant built in Georgia
Construction of the first wind power plant in Georgia has been finalized.
Merry Shearing in Akhmeta & the Future of Georgian Wool
Sheep have always played an important part in our country’s culture.
Georgia to start manufacturing locomotives of modern standards
This preliminary contract between Georgian Railways and a Georgian-Chinese company has been signed recently.
First Georgian whiskey to hit the market soon
The first Georgian whiskey named Jimsher will appear on the Georgian market shortly.
Biathlon Track to Open in Bakuriani
Turning Bakuriani, one of the most popular ski resorts in Georgia, into an Olympic standard location has been discussed numerous times since the mid-80s.
In The Land of Samsthe-Javakheti, Where the Potatoes Grow
From my experience, media tours usually tend to turn out as either dreadfully boring or very fun,
First grain processing factory to be built in Samegrelo region
The first grain processing factory is being built in western Georgia’s Senaki district by Zana Agro construction company.
Tsinandali wine brought back to life – The first bottled Georgian wine
Georgian modern technology of winemaking was born in the Tsinandali Estate that belonged to the 19th-century Georgian nobleman,
Georgia: RI’s example for business ease
Looking at how Georgia significantly improved its ease of doing business (EODB) ranking from 112th to eighth
Ecomigrant Women in Disveli Start Cheese Production
Every morning since April 2016 has started the same way for three women in Disveli village, Bolnisi Municipality.
Georgia: “Wine Tourism – a growing tourism segment”
The Financial reports about the Global Conference on Wine Tourism which has recently been held in Georgia.
Marketing Forum 2016 tickets on sale now
The tickets for the Marketing Forum 2016 in Tbilisi are already on sale. The forum that is due to begin on September 22
Turning an 8000 year wine tradition into success in Georgia
New opportunities are opening for Georgian winemakers and wine lovers through the EU funded programme East Invest 2
Christian Menegon to present master classes for at Marketing Forum 2016
Marketing Forum 2016 will be held in Tbilisi on September 22 and the main topic is ‘non-standard and innovative trends in marketing and packaging’.
Smart ring by Georgian students – It will replace wallet and can save your life
21-year-old Davit Kvitsiani is one of the 20 winners, who were revealed at Startup Georgia’s competition of high-tech business ideas.
Georgia’s Leading discount website now available in English is the leading company in internet sales. Close to 500 000 users trust its high quality and appreciates its significant discounts.
Tbilisi preparing to host International Marketing Forum
Tbilisi will host the Marketing Forum 2016. The main theme of the event is ‘Non-standard and Innovational Directions in Marketing and Packing’.
“Nobody can do your business better than you” – Young Georgian winemaker tells her story
23-year-old Baia Abuladze from Bagdati, Georgia, has been looking after the vineyard planted on 3.7 acres of land
Which imported products are destroyed in Georgia and which countries are they imported from
The products imported to Georgia are inspected at the border and if any particular product fails to pass the test
Handbags made by Georgian students to appear in Israel and Greece
The handbags produced by Georgian company called Begels will appear in Israel and Greece.
Government Subsidizes Vintage 2016 Harvest
Within the framework of the Vintage 2015 program, the government decided to issue 0.45 GEL per kilogram for Rkatsiteli
New Airport Planned for Georgia’s Mountainous Racha Region
TBILISI – Construction works for a new airport in Ambrolauri – a town located in western Georgia’s mountainous Racha region
Top 5 most popular Georgian wines on export
As of July 2016, the export of wines from Georgia has increased by 42% comparing to the same period of last year.
Healing socks containing silver appear on Georgian market

New type of socks, containing silver and used for medical purposes, have emerged at the Georgian market.

Other Stories
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
Some of Georgia’s commercial banks are already buying at 2 GEL per $1. Their webpages are publishing information regarding national currency’s exchange rate in real-time mode.
Georgia's central bank governor Giorgi Kadagidze says Ukraine is in the same bind as Georgia was in when Russia banned its neighbor’s exports in 2006
Food and drinks at the territory of “Kazantip Republic” became cheaper. Some bars and food providers reduced their prices by 20% to 50%. For example, khinkali that cost 2 GEL
On the 20th of August, at 9 in the evening, “Kazantip” festival was declared officially open, with both multitudes of foreign guests and local denizens attending.
GEL Exchange