How much does government cost us
11 December, 2014
How much does government cost us
Colossal wages, bonuses and accessories – wages of civil servants of many governments have more than once become the issue of public discussion. Actually, neither the previous nor the current authorities managed to resist the temptation of becoming rich at the expense of the budget. Who assigned more wages and bonuses to himself? Who deserved it and who didn’t? These are among the most frequently asked questions. The main thing is that the budget is filled with the money taken
from the taxpayer’s pockets and it’s also interesting what sum is annually spent on the civil servants’ wages.


“Out of the nine-billion-GEL budget, 1.3 billion is planned for salaries”

Out of the 9-billion-GEL budget, about 1.318 billion GEL is planned for the civil servant salaries. The biggest part of this sum – 428 million GEL is assigned to the Ministry of Defense with the total number of 43,475 employees. According to the budget salary volume, the Interior Ministry is the runner-up with 398.9 million GEL and 28,533 employees. The third place goes to the Finance Ministry and the fourth to the Ministry of Corrections. A total sum of 1.3 billion GEL is distributed to 105,000 employees. Approximately the same amount is allocated to about 700,000 pensioners who receive pensions of 150 GEL.
Demur Giorkhelidze, an expert on economic issues, explains the following: “The real, disguised policy of the government is wellbeing for higher - ups as quickly as possible because nobody will keep them around for very long! The fact that for the Georgian taxpayer it’s rather expensive to keep the government was obvious when the information about excessive bonuses, wages and appendages of the high-rankers was made public. For instance, in America and Europe much attention is paid to this indicator and maximum wages can only be ten times higher than the minimum ones. Here this ratio exceeds one hundred. The public servants’ expenses for business trips and objects of luxury are added to other budgetary expenditures. In a nutshell, we have an “expensive” government and the results of their work don’t warrant the expenditures.
Levan Kaladze, another expert on economic issues puts it this way: “Administrative expenditures and maintaining state functions is considered to be a priority today. But before coming to power one of their priorities was the idea of less powers and less government. And today out of 9 billion 1.3 billion is planned only for wages.
By the end of 2015, 160 GEL will have less purchasing power than 150 GEL has today. Thus, under these circumstances it is rather an issue of national morale to indulge oneself in huge administrative expenditures. I say nothing about the rationality and correctness of this from an economic point of view. It’s necessary to review the priorities and to note competencies. For instance, what does the Finance Ministry have to do with the growing and selling apricots? It’s natural that the state has burdened itself with all these responsibilities. With this in mind, it’s difficult to speak about the implementation the concept of small government and scaling down the budget wage fund. Actually, nothing of this kind is possible under the state management conditions of today’s Georgia.”

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