The Budget and Finance Committee heard the three-month review of the implementation of Georgia’s 2026 State Budget, presented by the Finance Ministry.

Presenting the report, First Deputy Finance Minister Giorgi Kakauridze spoke about the main economic parameters and noted that the 2026 budget had been planned based on a projected 5% economic growth rate; however, economic activity during the first quarter of the year exceeded expectations.

According to him, real economic growth reached 7.9% in January, 8.8% in February, and 10.7% in March. Overall, the average economic growth rate for the first quarter stood at 9.1%.

He also stated that inflation in March was 4.3%, while the average inflation rate over the last twelve months amounted to 4.4%.

According to Giorgi Kakauridze, in terms of the external sector, Georgia’s foreign trade turnover in goods during the first three months of the year amounted to USD 5.867 billion. Of this, exports totaled USD 1.724 billion, representing a 23.4% increase compared to the same period last year, while imports amounted to USD 4.143 billion, a decrease of 7.1%.

He further noted that in the first quarter of 2026, Georgia hosted 1.170 million international visitors, of whom 997,500 were tourist visitors, approximately 4% higher than the figure recorded during the same period last year.

According to the presenter, tourism revenues in the first quarter of 2026 amounted to USD 829.8 million, which is 0.5% higher than the previous year’s figure.

He also stated that net remittances increased by 14.4% year-on-year during the first quarter of 2026, reaching USD 797.7 million.

Speaking about the mixed budget, Giorgi Kakauridze noted that revenues exceeded projections and amounted to GEL 6.942 billion, representing 102.6% of the planned figure.

According to him, state budget revenues also exceeded projections, totaling GEL 5.983 billion, or 101.6% of the planned amount.

In terms of tax collection performance, GEL 5.594 billion was mobilized, which equals 100.5% of the forecast indicator.

According to the three-month review of state budget implementation, the Law on the 2026 State Budget of Georgia defines state budget expenditures at GEL 30.881 billion.

Out of these funds, the adjusted appropriations allocated during the reporting period amounted to GEL 7.903 billion, while cash execution reached GEL 7.238 billion. Cash execution accounted for 91.6% of the quarterly target and 23.4% of the annual approved budget.

Following the presentation of the three-month review of the 2026 State Budget implementation, Giorgi Kakauridze answered questions from committee members.