Zaza Gabunia: the Budget for 2021 allows the formation of Georgia into a fully developed country in infrastructural terms

09 Oct 2020
Zaza Gabunia: the Budget for 2021 allows the formation of Georgia into a fully developed country in infrastructural terms

I would like to express my consent about the assignments for the Regional Development Ministry increased with 615 ml GEL, as the greatest part of these resources will be consumed on the global and important projects not finalized yet. This budget allows the formation of Georgia into a fully developed country in infrastructural and logistic terms, which is important for attraction of the investments”, - the Chair of the Regional Policy and Self-Government Committee, Zaza Gabunia stated at the sitting after consideration of the draft State Budget 2021 with the enclosed documents, introduced by the Deputy Finance Minister, Giorgi Kakauridze.

He dwelt on the macro-economic parameters stating that the budget for 2021 is planned with 5% economic growth, and the inflation index is reduced to reach 4% at the end of the year. The budget deficit in regards to GDP increased by 2-2.5%, the tax incomes to the mixed budget are planned with 12.2 bl. GEL, though the initial plan for 2020 was less with about 100 ml GEL. The current and capital expenses are reflected in the budget in the form of the laws related to the pension indexation.

The projects launched in 2018-2020 will enjoy the increased finances – these are the infrastructural projects the expenditure part of which comes to 2021-2022. We strive to maintain the expenditures index on 8%”, - the reporter noted.

According to him, the budget expenditure part constitutes 17 bl. 71 ml GEL – increased with about 1 bl. 150 ml GEL compared to 2020. The assignments for the Regional Development Ministry are increased with 2 432.6 ml GEL – higher with 615.0 ml GEL than in the preceding year.

Other assignments are allocated as follows:

  • Road infrastructure works – 1 648.5 ml GEL, including the road construction;
  • Regional and Municipal infrastructural rehabilitation – 252.9 ml GEL;
  • Water supply infrastructural rehabilitation – 281.5 ml GEL;
  • Solid Waste Management – 30 ml GEL;
  • General Education infrastructure – 165 ml GEL;
  • Support for IDPs – 38 ml GEL.

The introduced indices will be revised and may be amended.

The Committee also discussed d approved the agenda issues – the bills on Agro-tourism and on Tax Code by the Agrarian Committee; and the document for ratification between Georgia and EIB (Georgia-East-West Highway – A); and between Georgia and EIB (Georgia-East-West Highway – B).