Half Billion at Disposal of New Government
11 October, 2012
Half Billion at Disposal of New Government

Only half billion out of much trumpeted GEL 2 billion allegedly accrued in the state coffer is available for the new government to finance the budgetary obligations. The new government finds the sum sufficient to meet the year-end without problems. Incognito sources claim the ex-government scrapes pockets of state enterprises to make figures on the paper flow in cash. 

It is an open secret that the ex-ruling party of National Movement has been misusing the state budget to finance its campaigns

for the elections of parliamentary, presidential or self-governance bodies. Non-governmental watch-dogs have been calling on National Movement to stop using administrative resources to this end but to no avail. And this past parliamentary elections was no exception. As far as this time Nationals’ had to compete political coalition of Georgian Dream founded [and perhaps funded] by a billionaire Bidzina Ivanishvili, now a candidate for premiership, there was an expectation that the state purse would be completely empty in the post-election period. The delayed pensions somewhat fueled this presumption.

To disperse rumors and demonstrate that the state coffer is as affluent as it has never been Vano Merabishvili, the incumbent Prime Minister of Georgia with roots in National Movement, summoned Aleko Khetaguri, Minister of Finances of Georgia, at the state chancellery on October 8, 2012 to report to the country that GEL 2 billion is accrued at the state accounts that enables the new government to meet all the pre-election promises given to the electorate. The meeting was held behind closed doors but broadcasted on TV channels so as to impress audience by disclosing details of the record-high financial resources of the country. However not a single journalist was able to give questions to the speakers to elaborate details of the reported statistics.

According to Khetaguri, the volume of sums accrued at the state accounts as of September 2012 reached GEL 2 billion, out of which GEL 920 million is in the state treasury, GEL 200 million - on the accounts of self-governance units, GEL 320 million - on the accounts of public law entities, and GEL 587 million is accrued on the deposits of the state enterprises.

Khetaguri accentuated that Georgia also has international reserves at its disposal the volume of which exceeded USD 2.9 billion as of September 2012 according to the statistics of Georgian central bank. Sources close with the affair say there is no cash money in the state coffer in fact and government just does its best to  scrape pockets of the state enterprises and “encash” their movable property like car parks to channel due cash money supply in the state budget.

“It is impossible to a person outside government to say how much is really accrued in the state budget and how the budgetary expenditures met the timelines defined by the main fiscal document of the country, these data are available only to the finance ministry at the moment,” Nodar Chichinadze, President of Association of Young Financiers and Businessmen, said to Georgian Journal.

Out of the single mandated bodies that have an access to the budgetary paper-work at the moment is the team of Georgian Dream, the winning party, responsible for financial issues. They have just started delving in papers together with the finance ministry and cannot speak on full details whether or not budgetary expenses met scheduled timelines or if there is any blemish in spending. But what they can say for sure is that only half billion is available out of the trumpeted GEL 2 billion in fact.

According to Davit Onoprishvili, a candidate for the post of the Head of Finance and Budgetary Committee at Parliament, the money accrued at accounts of the self-governance units, public law entities and the deposits of the state enterprises cannot be used for financing ongoing operational expenses [like financing pensions] for they are transferred money. What the state coffer includes in cash is GEL 920 million in the state treasury but only GEL 500 million out of this figure is accumulated in the state budget.

“USD 116 thousand out of this half billion is made up by the remnants deducted from foreign currency and the remaining part makes around GEL 300-350 million that is a rather small amount but incomes inflow every day and we hope that revenue service will continue to collect taxes in smooth regime and if there will be no unforeseen expenses, most probably we will meet all budgetary obligations by the end of this year,” Onoprishvili elaborated to GJ.

Other Stories
Inovative and reliable online shop in Georgia - Momitane.ge
Status of Georgia as a business and tourism interesting country is growing from year to year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equiavlent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
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
GEL Exchange
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30