Tbilisi close to budgetary crisis
13 February, 2014
Tbilisi close to budgetary crisis
Tbilisi will soon face a budgetary crisis due to power struggle between its local executive body - the Mayor’s Office and the local representative body - Sakrebulo. Three months remain before the upcoming local elections, but the Georgian capital still lacks the necessary fiscal document for 2014. If the paper is not approved by 11 March, it may lead to a dismissal of the Tbilisi authorities and establishment of a temporary central power. Meanwhile, social projects may be halted.
The draft
of the Tbilisi budget for 2014 entered Tbilisi Sakrebulo – the assembly that is an elected representative body of the city government - on 15 November 2013, and although the draft went through amendments three times, it is stalled due to conflicts between the minority supported Mayor’s office and the majority-controlled Sakrebulo. Analysts attribute this to the local elections scheduled for this spring.
In fact, Irakli Shikhiashvili, a member of the ruling coalition and Chairman of Sakrebulo, said Sakrebulo cannot trust the GEL 785 million specified by the Tbilisi budget draft to the minority-staffed government of Tbilisi in the pre-election period. The United National Movement formerly in power from 2004-2012 has been charged with misuse of budget money during pre-election campaigns.
The minority complains that the ruling party aims to dismiss Tbilisi government in order to get its hands on financial levers of the Tbilisi budget before the elections, while the absence of a new budget will hinder a number of social projects, including financing kindergartens, health-insurance, public transport travel funding for 600 thousand socially vulnerable people, vouchers partly compensating Tbilisi residents in the winter, and many more.
Shikhiashvili believes the capital cannot face any financial problems if the budget is not approved, since the budget law allows Tbilisi to get GEL 60 million from the central budget each month. The law states that unless the new budget of the self-governing body is approved, the central budget finances this body by one-twelfth of its previous budgetary allocations each month, until a new budget is approved.
However, this one-twelfth financing cannot cover the public transport compensation of 600 thousand beneficiaries after February, and kindergartens may also lose financing. Besides, many projects entailing tenders cannot be announced without the new budget.
But Georgian non-governmental watchdogs are most afraid of a political crisis. According to the budget code of Georgia, if the local government fails to approve its budget within three months after the state budget approval date, the central power will dismiss the local authority and undertake ruling of the self-governing body through a new Mayor assigned by the federal government until a new Assembly is elected. The state budget for 2014 was approved on 11 December 2013, and if the Tbilisi budget is not approved by 11 March, the described scenario will result.
However, dismissal of local government and establishment of temporary central power three months before the upcoming local elections contradicts Georgia’s international obligations, the National Association of Local Authorities of Georgia (NALAG) warned on 7 February. Georgia is a member of the European Council that prohibits its member-states to dismiss an elected governing body six months ahead of scheduled local elections. To avoid problems NALAG calls for Tbilisi Sakrebulo majority and minority factions to reach a consensus. Many other NGOs approve the idea.
“It is impossible to establish central power in the capital on the grounds of a budgetary crisis when in three months a new local authority will be elected, and the voters will give it a mandate on Tbilisi budget spending and control,” they contend.

Other Stories
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,
Winemakers to produce Kvanchkara in its place of origin - Racha
Khvanchakara is a semi-sweet Georgian red wine which originates from Racha, in the western part of Georgia. Kvanchkara is made of two types of grape Mujuretuli and Aleksandrouli.
The level of Georgian wine and Chacha exported has increased
The National Wine Agency of Georgia has recently published statistical information about the level of Georgian wine and Chacha exported between January and July, 2018.
New fire engines to be Manufactured in Georgia
The Acting Head of the Emergency Management Agency Shalva Khutsishvili said that the old Zili fire engines (which were made in the USSR) will be phased out and replaced with new ones, manufactured in Georgia.
Georgia witnesses a record number of tourists
The Georgian National Tourism Administration publishes statistical information about international visits to Georgia.
Canadian businessman plans to build a hotel in Bakhmaro
Canadian businessman Vadim Malishev plans to build a hotel in Bakhmaro resort, Guria, in the western part of Georgia.
Coffee Factory will open in Tbilisi in October
The first coffee factory (which will be located on the Kakheti highway) in Tbilisi will open in October.
Places in Georgia where real estate is the most expensive
The real estate market in Georgia is growing annually. In Tbilisi as well as other regions of Georgia new developments are increasingly taking place.
How much does a vacation cost in Tbilisi?
It is the middle of summer and those who have not yet taken a vacation are looking for an appropriate place for sure!
The price for extreme sports in Georgia
Georgia offers a variety of options to extreme sport lovers.
The number of Georgians who own property abroad increases
The number of foreign properties owned by Georgians is increasing.
How much does Taxi cost in Tbilisi?
Stories how Taxi drivers try to deceive passengers and charge them with more money than they should pay are known for everybody all over the world.
What are the highest paid areas in Georgia
According to the data collected by the National Statistics Office of Georgia in the first quarter of 2018 the highest paid jobs in Georgia are found in the financial and insurance fields.
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
September 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