The passed amendment has also cut down initially targeted tax revenues by GEL 500 million.
Increase of expenditures comes mainly at the expense of planned issuing of GEL 260 million treasury bills on the domestic market and of credits from the World Bank and the Asian Development Bank.
According to the government’s “explanatory note”, attached to the amendments, “the world economic crisis” and “instability inside the country” have become the reason of expected economy contraction by 1.5%, instead of initially forecasted 2.5% growth.
The passed amendment also cut funding for some of the ministries and state agencies, including for the Ministry of Defense by GEL 45 million. The latter’s initial funding stood at GEL 950 million.
Other agencies, which will face funding cut, are:
Ministry of Regional Development and Infrastructure – by GEL 9.5 million;
Finance Ministry – GEL 4.4 million;
Ministry of Environment Protection - GEL 3.6 million;
Justice Ministry – GEL 1 million;
Foreign Ministry - GEL 650,000;
Ministry of Culture, Protection of Monument and Sports - GEL 133,600;
President’s administration - GEL 1.7 million;
Government’s administration - GEL 1.0 million;
The amendments increase funding of some agencies, including: the Tbilisi municipality by GEL 69.4 million and Ministry of Labor, Healthcare and Social Protection by GEL 39.7 million for financing of social and healthcare programs by 15.9 million and 22.3 million Lari, respectively; regional programs – GEL 37.6 million, of which GEL 20.0 million will be allocated for construction/rehabilitation of public schools; Georgia’s Municipal Development Fund – GEL 17.6 million; Ministry of Agriculture – GEL 25.9 million for subsidizing grape harvest; Ministry of Refugees and Accommodation will receive additional GEL 16.3 million; GEL 9.2 million out of this sum will be spent on granting compensations to the victims of the August war, while GEL 4.7 million will be spent on communal expenses of these people.