Government discusses 2020 'socially responsible' budget at extraordinary sitting
By Levan Abramishvili
Tuesday, October 1
The 2020 budget embraces the spirit of social responsibility and economic development of the state, Georgian Prime Minister Giorgi Gakharia said on September 30 during an extraordinary meeting of the Cabinet to review the 2020 budget.
The financial document represents the main objectives that guide the governing political team, according to the Head of Government. The effective implementation of this budget will define the country's development in 2020, the PM added.
The 2020 budget is based on citizens' needs and relies on the social interests of the most significant social strata, according to Gakharia.
“Among others, the budget relies on the interests of the groups to define the country's future, primarily children. And, of course, our pensioners and meritorious elderly, caring for who is our major responsibility. The budget, needless to say, also pays due attention to teachers, doctors, law enforcement, and soldiers. Consequently, the key principle of the budget rests on the needs of our citizens, something we believe to stand for the state’s mandatory social responsibility,” Gakharia noted.
Elaborating on the social aspect of the 2020 budget, Gakharia claimed that for all pensioners, including group 2 individuals with disabilities and individuals under 18, it entails a 20 GEL rise in pensions.
According to the Head of Government, pensioners over 70 will benefit from an additional 30 GEL pension increase starting on July 1, resulting in a total of 50 GEL pension increases for this group of citizens.
“Additionally, salaries will increase for full-time teachers in both this and next year. Consequently, their raise by the 2020 academic year will reach 300 GEL,” PM said.
According to him, in the 2020 academic year, salaries for kindergarten teachers will also increase by an average of 100 GEL. Salaries will continue to grow for law enforcement, soldiers, and persons with equivalent status, and the state, as part of its obligations, will increase their salaries by at least 125 GEL, Gakharia pledged.
“Starting on July 1, 2020 salaries for doctors will grow by 100 GEL. Of course, we all understand that it is the mandatory minimum that we will provide, and effective assistance, above all else, must be provided to social groups serving as the country's pillars. I emphasize that development and future rest on children, pensioners, teachers, law enforcement, soldiers and, of course, doctors,” Gakharia said.
The Head of Government emphasized the key principles on which the 2020 budget is based.
“Firstly, it is a citizen-oriented budget creating greater opportunities for citizens. Secondly, equally prioritized are infrastructural projects critically important for economic development, and that, among others, aims to enhance the effectiveness of our economy. Thirdly, we prioritize budget effectiveness management. And here we cannot allow any compromises. That is why, my friends, the key obligations that your respective ministries carry must be fulfilled in a timely and effective manner. Another critically important principle involves maximally abstaining from growing expenses wherever it is possible, and even curbing expenses, if possible,” Gakharia told the gathered ministers.
Gakharia spoke about the involvement of the whole ruling team in developing the budget, which embraces the spirit of making effective use of people’s money to benefit people.
“It is the first budget developed together by our entire political team, including the Party's Chairman, each member of the Cabinet, every MP, and every stakeholder, also representatives of local self-government. This budget embraces the spirit of using people’s money effectively to benefit the people, and that is the underpinning spirit of this budget, and that is our obligation to our citizens,” noted the PM.
A total of GEL 14 211 880 700 will be allocated for the 2020 budget, which is GEL 1,121 billion more than the 2019 budget plan (GEL 13 090 000 000 was budgeted for 2019), in line with the aforementioned “socially responsible” plans, most of the money will be allocated to the Health Ministry.
According to the 2020 draft budget, the allocations for ministries are as follows:
Ministry of Finance: 93 million (2 million GEL increase compared to 2019 budget)
Ministry of Economy and Sustainable Development: 364 million (GEL 5.5 million decreases compared to 2019)
Ministry of Regional Development and Infrastructure: 2 071 600 0000 (GEL 71.6 million increase)
Ministry of Justice: GEL 203 million (an increase of GEL 21,870 million)
The Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs: GEL 4 347 000 000 (an increase of 378.6 million)
Ministry of Foreign Affairs: GEL 159 million (an increase of GEL 22.5 million)
Ministry of Defense: GEL 880 000 000 (increase - GEL 5 million)
Ministry of Internal Affairs: GEL 770 000 000 (an increase of GEL 28.4 million)
Ministry of Environment and Agriculture: GEL 353 million (increase - GEL 14.1 million)
Ministry of Education, Science, Culture and Sport - GEL 1 636 000 000 (an increase of GEL 132.3 million)
Additionally, the Tbilisi City Hall budget also saw a GEL 100 million increase in the 2020 budget. As the PM stated at the sitting, the City Hall will receive additional funding to make the city more tourist-friendly, as well as a more comfortable for the citizens.
According to the Prime Minister, yesterday’s debates will mark the conclusion of work on the 2020 budget, which will be subsequently referred to the Parliament.
