New government submits 2013 state budget draft

The draft of the 2013 state budget was presented to Parliament on November 7th. The document submitted by the Deputy-Minister of Finance is not the final version and will be reviewed before the Parliament approves it by the end of the year. The draft of the State Budget was already discussed by the European Integration, Foreign Relations and Diaspora and Caucasus Issues committees.

Minister of Finance Nodar Khaduri promised that the new budget will be oriented towards the general population and their needs. All unjustified expenditures will be limited. “This is no time for luxury.” he said in a TV interview.

As promised by Georgian Dream during the parliamentary election campaign an estimated 740 million GEL will be allocated for towards healthcare, agriculture and education.

Funds will be cut for the President’s administration as well as for the National Security Council (NSC) and all nine provincial governors. NSC received 24.78 million in 2012, of which GEL 1.12 million was allocated for the salaries of 38 staff. The 2013 state budget will only allocate 1.8 million GEL to the NSC. Limited funds will be allocated for the President’s discretionary fund. Prime Minister Bidzina Ivanishvili commented on the changes in the budget and said that funds saved from administrative expenses and the President’s discretionary fund will be spent on supporting IDPs and other citizens in need of social benefits.

Funding of several ministries will be increased in 2013, as well as funding for the Georgian Orthodox Church, which will increase from 22.8 million to 25.0 million. The provisionary state budget for 2013 is as follows:

• Ministry of Healthcare and Social Protection –2 billion GEL (1.809 billion GEL in 2012);
• Defense Ministry - 690 million GEL (2012 –676.5 million GEL; 2011 –711 million GEL ; 2010 –728 million GEL);
• Interior Ministry - 585.2 million GEL (2012 –585 million GEL; 2011 –568 million GEL; 2010 –549.2 million GEL);
• Finance Ministry –100 million GEL (2012 –118.2 million GEL);
• Ministry of Economy and Sustainable Development –70.5 million GEL (2012 - 134.2 million GEL);
• Ministry of Regional Development and Infrastructure –855.3 million GEL (2012 - 982 million GEL);
• Ministry of Energy and Natural Resources - 118.26 million GEL of which 37.46 million GEL is for foreign grants and 71.8 GEL for credit. (2012 - 290.1 million GEL);
• Justice Ministry - 67 million GEL (2012 - 54.1 million GEL);
• Ministry in charge of prison system –170 million GEL (2012 –124.9 million GEL);
• Foreign Ministry - 76 million GEL (2012 –83.5 million GEL);
• Ministry of Education and Science –640 million GEL (2012 –600.6 million GEL);
• Ministry of Culture and Protection of Monuments –67.8 million GEL (2012 –92.7 million GEL);
• Ministry of Sport and Youth Affairs - 47 million GEL (2012 –59 million GEL);
• Ministry of Agriculture - 218.9 million GEL (2012 –148.9 million GEL);
• Ministry of Environment Protection - 21.5 million GEL (2012 –23.8 million GEL);
• Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees - 48 million GEL (2012 –38.1 million GEL);
• Office of the State Minister for Reintegration Issues –1.3 million GEL (2012 –1.2 million GEL);
• Office of the State Minister for Integration into European and Euro-Atlantic Structures –2.3 million GEL (2012 – 2.3 million GEL);
• Office of the State Minister for Diaspora Issues –850,000 GEL (2012 - 850,000 GEL).
• Office of the State Minister for Employment –1 million GEL (2012 –950,000 GEL). The government plans to abolish this ministry.

The government plans to increase funding for the Ministry of Healthcare and Social Protection from 1.8 billion to 2 billion, of which 1.49 billion GEL will be allocated for pensions and social programs.

According the draft budgetary revenues for the 2013 fiscal year are set at 7.43 billion GEL and expenditures at 7.33 billion GEL.