The Deputy Finance Minister, Giorgi Kakauridze introduced the draft State Budget 2021 and the enclosed document on Main Data and Directions of the Country for 2021-2024, and the Report of the Government on Fulfillment of the State Budget 2020 to the EU Integration Committee with the I reading.
Speaking about the economic parameters, the reporter elucidated that the expectations according to the updated forecast was economic reduction with 4,9%, though the economic growth for 2021 is planned with 5%. As to inflation, the index at the end of the year will be below 4% and will return to 3% in 2021. The deficit in regards with GDP constituted 8.5% in 2020, though the index shall be reduced back to 3%. The deficit index for 2021 constitutes 5.1%. The debt index is also increased approaching 58% in 2020, though the index is planned to be reduced to 56% in 2021.
“We need to ensure the reduction in this direction as well to maintain the index below 55% to, if risks occur, do not exceed the critical edge of 60%”, - he noted.
As to the incomes, the total incomes for 2021 constitute 14 bl. 759 ml GEL – less with 3.7 ml GEL compared to 2020. The tax incomes constitute 10 bl. 450 ml GEL; other incomes – 550 ml GEL; grants – 285 ml GEL; financial and non-financial assets are reduced with 150-150 ml GEL, and the liabilities increased to 3 bl. 154 ml GEL. The debt is being covered with 2 bl. 640 ml GEL and the total net growth constitutes 534 ml GEL. The expenditure part envisages 17 bl. 17 ml. GEL – increased with 1 bl. 150 ml Gel compared to 2020. As to the consuming instances, the highest amount is consumed by the Ministry of IDPs, Labor, Health and Social Protection – 4 bl. 852 ml GEL.
“We have the extra 300 ml GEL of increase, related to the increased pensions and pension indexation”, - the reporter elucidated.
The Regional Development and Infrastructure Ministry consumes 2 bl. 421 ml GEL; Education, Science, Culture and Sports Ministry – 1 bl. 738 ml GEL; Economic and Sustainable Development Ministry – 356 ml GEL; Justice Ministry – 251 ml GEL; Foreign Affairs Ministry – 156 ml GEL; Defense Ministry – 900 ml GEL; Interior Ministry – 790 ml GEL; Environmental Protection and Agricultural Ministry – 415 ml GEL. The Committee approved the draft.