The Committee discussed with the II reading the Bill on Budget Code, the draft organic law on Municipal Code, and the draft organic law on Economic Freedom introduced by the Deputy Finance Minister, Giorgi Kakauridze.
The Bills are related to improvement of state finances. “We considered the IMF recommendations and improved the respective Articles in the Budget Code. We have also clearly formulated the meaning of the fiscal rules in the law on Economic Freedom”, - he noted.
The Committee approved the Bills and discussed and approved the Bills on: Forest Code; Forest Fund Management; Fauna; Code of Administrative Offenses, introduced by Sulkhan Makhatadze.
The Bills are entailed with necessity to clearly separate the oversight functions of the State Forest Fund territory. This function is distributed between the Administrative Body and the Environmental Supervision Department. “The functions are more or less separated, though there are the gaps upon enforcement especially upon oversight – the functions are doubled which cannot give effective outcome”, - he noted.
It requires effective mechanism in the control system. “Imposition of the control function to one agency will ensure prevention/detection/elimination of illegal use of forest through the specialized system to be focused on one direction – control. Deprivation of this function from the Administrative Body and transformation to the forest protection control system will improve planning of the forestry-economic activities and will enable mobilization of control function under the single agency. It will have positive impact on prevention of illegal use of forest”.
Adoption of the Bills will not affect the income part of the budget as the number of personnel in the National Forest Agency will be reduced with 459 the total salaries of which constitute 3 882 600 GEL.
The personnel of the Supervision Department will increase but the salaries will constitute 5 520 00 GEL. Thus, the difference constitutes 1 637 000 GEL.
“Hence, taking the income tax into account, the Bill will not affect the income part of the Budget”, - the reporter stated.
The Committee took note of the report on tate budget 2018 implementation for 9 months.