The Sector Economy and Economic Policy Committee discussing the draft State Budget 2021

09 Oct 2020
The Sector Economy and Economic Policy Committee discussing the draft State Budget 2021

The Deputy Finance Minister, Giorgi Kakauridze introduced the draft State Budget 2021 and the enclosed documents to the Committee and informed MPs about the macro-economic parameters.

Deriving from the pandemic, the parameters to the budget had to be changed.

According to the current forecasts, the economic reduction in 2020 will achieve 4.9%, though the basic indices of 2021 allow us to expect its increase to 5% economic growth again. Besides, the average growth index for 2022-2024 is forecasted as 5%, however, deriving from the global pandemic, we may have higher economic indices. We also need to consider the worst scenarios, so we all work to cover all possible risks and revise the draft budget into the final version”, - he noted.

As to inflation, it may drop below 4% but regain the target index in 2021. The tax income forecast in nominal expression constitutes 12 bl. 200 ml GEL – less than the 2020 initial forecast with 105 ml GEL. The reporter spoke about the budget deficit and the state debt, noting that the Government strives to reduce the debt amount within 3 years.

The reporter stressed the budget incomes, assignments and capital expenditures and spoke about the consuming institutions and the amount of the assignments allocated for them. He also introduced the document on Main Data and Directions for 2021-2024 – the main economic and financial indices, the basic and optimistic and pessimistic scenarios, and stated that today, the Committee discusses the initial version of the draft still under consideration in the Committees.

The Government also cooperates with IMF. After considerations, the Parliament is to develop the recommendations to be reflected in the revised version.

The reporter answered the questions and the Committee approved the drafts with the reservation that the revised version will reflect the remarks expressed at the sitting.

Gallery

  • The Sector Economy and Economic Policy Committee discussing the draft State Budget 2021, October 9, 2020
  • The Sector Economy and Economic Policy Committee discussing the draft State Budget 2021, October 9, 2020
  • The Sector Economy and Economic Policy Committee discussing the draft State Budget 2021, October 9, 2020
  • The Sector Economy and Economic Policy Committee discussing the draft State Budget 2021, October 9, 2020
  • The Sector Economy and Economic Policy Committee discussing the draft State Budget 2021, October 9, 2020
  • The Sector Economy and Economic Policy Committee discussing the draft State Budget 2021, October 9, 2020
  • The Sector Economy and Economic Policy Committee discussing the draft State Budget 2021, October 9, 2020