Country’s Total External Debt to Drop to 51.1% of GDP in 2022, PM Garibashvili Says

By Khatia Bzhalava

Tuesday, December 7

“We have succeeded in increasing GDP, our country's entire economy, by GEL6.5 billion, an impressive achievement in light of the pandemic and crises,“ Georgian Prime Minister Irakli Garibashvili said.

Starting January 1, pensions will increase by GEL20-25.

Georgian Prime Minister Irakli Garibashvili announced yesterday at the Cabinet meeting that the country’s total budget next year will amount to GEL65 billion, meaning that GDP per citizen will exceed $5,500, “which is a historical maximum.”

According to Garibashvili, double-digit economic growth is expected by the end of the year, enabling the government to increase the budget by one billion GEL310 million. He also stressed that the foreign debt has been reduced, and in 2022, 60% of GDP, the country’s total external debt, will drop to 51.1%.

The head of the government stressed that the next year’s budget includes raises in salary for public sector workers by about 10%, noting that the change will not be one-off and the raises will continue in the following years as well. It was also noted at the Cabinet meeting that from January of 2022 pensions will increase to GEL260 for pensioners under 70, and GEL300 for those over 70. State benefits for veterans will also grow to GEL100.

According to Garibashvili, GEL114 million from the 2022 budget will be allocated for the construction of residential buildings for refugees, while GEL500 million will be used for Covid-19 management, and GEL300 million for implementing projects in Georgia's regions.

The financing for individual Ministries in 2022 are as follows:
• Ministry of Finance - GEL105,404,800, (increased by GEL16,000,000)
• Ministry of Economy and Sustainable Development - GEL932,000,000
• Ministry of Regional Development and Infrastructure - GEL2.8 billion (increased by over GEL430,000,000)
• Ministry of Justice - GEL 310,568,400 (increased by GEL14,000,000)
• Ministry of Foreign Affairs - GEL176,000,000, (increased by GEL6,000,000)
• Ministry of Defence - GEL1 billion, (increased by GEL72,000,000)
• Interior Ministry - GEL865,000,000, (increased by GEL85,000,000)
• Ministry of Internally Displaced Persons from the Occupied Territories, Health, Labor and Social Affairs – over GEL6 billion
• State Ministry for Reconciliation and Civic Equality - GEL3,000,000, (increased by GEL500,000)
• Ministry of Environmental Protection and Agriculture of Georgia - GEL593,000,000
• Ministry of Education and Science - GEL1,694,000,000.
• Ministry of Culture, Sport and Youth Affairs - GEL357,000,000.