The government submitted this week to the Parliament for consideration initial draft of 2012 state budget setting revenues for next year at GEL 6.606 billion and expenditures – at GEL 6.131 billion.
Revenues for 2011 fiscal year are set at GEL 6.304 billion and expenditures – at GEL 5.966 billion.
Forecasted tax revenues are set at GEL 6.1 billion next year, up from planned GEL 5.65 million this year. According to the draft, the government expects GEL 206 million in foreign grants next year.
The draft forecasts 2012 economic growth at 5.5%, setting an expected nominal GDP to amount up to GEL 26.5 billion. Forecasted annual inflation is set at 6%.
The proposed initial draft marks first time since 2008 that the Ministry of Defense (MoD) will receive increased funding over the previous year. The draft sets 2012 MoD funding at GEL 690 million, up by GEL 30 million over 2011. Defense funding picked in 2008 to over GEL 1.5 billion and started to reduce in following years.
The Interior Ministry’s funding will be increased by GEL 18 million next year, according to the draft.
Funding of the Ministry of Healthcare and Social Protection will also increase by GEL 30 million next year, according to the initial draft. It also allocates GEL 89 million more for the pension fund, although draft does not specify whether further increase of monthly pension is planned next year. Minimal monthly pension increased to GEL 100 starting from September for which additional GEL 55.2 million was allocated in the 2011 state budget.
The largest funding hike is envisaged for the Ministry of Energy and Natural Resources, which will receive additional GEL 153 million next year, according to the draft.
Breakdown of funding per ministries is as follows:
- Ministry of Healthcare and Social Protection – GEL 1.722 billion (2011 – GEL 1.692 billion);
- Defense Ministry - GEL 690 million (2011 – GEL 660 million; 2010 – GEL 728 million);
- Interior Ministry - GEL 584 million (2011 – GEL 566 million; 2010 – GEL 549.2 million);
- Finance Ministry – GEL 111.7 million (2011 – GEL 204.7 mln);
- Ministry of Economy and Sustainable Development – GEL 80.3 million (2011 - GEL 106.3 million);
- Ministry of Regional Development and Infrastructure – GEL 914.7 million (2011 - GEL 879.1 mln);
- Ministry of Energy and Natural Resources - GEL 369.3 million (2011 - GEL 216 mln);
- Justice Ministry - GEL 74 million (2011 - GEL 70.7 mln);
- Ministry in charge of prison system – GEL 120 million (2011 – GEL 106.5 mln);
- Foreign Ministry - GEL 76 million (2011 – GEL 73.2 mln);
- Ministry of Education and Science – GEL 560 million (2011 – GEL 555 mln);
- Ministry of Culture and Protection of Monuments – GEL 55 million (2011 – GEL 55.6 million);
- Ministry of Sport and Youth Affairs - GEL 35.5 million (2011 – GEL 35 million);
- Ministry of Agriculture - GEL 69.8 million (2011 – GEL 79.9 million);
- Ministry of Environment Protection - GEL 14 million (2011 – GEL 13.9 million);
- Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees - GEL 31.8 million (2011 – GEL 40.7 million);
- Office of the State Minister for Reintegration Issues – GEL 1.2 million (2011 – GEL 1.2 million);
- Office of the State Minister for Integration into European and Euro-Atlantic Structures – GEL 2 million (2011 – 1.6 mln);
- Office of the State Minister for Diaspora Issues – GEL 800,000 (2011 - GEL 788,000).
Funding of the parliament, administrations of president and government will remain almost unchanged at GEL 40.1 million, GEL 14.1 million and GEL 8.5 million, respectively. Funding of the president’s and government’s reserve funds will also remain unchanged at GEL 50 million each.
Next year, when the parliamentary elections are planned, the Central Election Commission (CEC) will receive increased funding of GEL 37.9 million, according to the initial draft.
The draft allocates GEL 599.7 million for road infrastructure of which GEL 254.6 million is the state funds and GEL 345 million is credit. A share of credits is also prevailing in funding of rehabilitation of regional and municipal infrastructure and water supply infrastructure.
According to the draft, autonomous republics and local self-government bodies will receive GEL 888.9 million from the central budget with Tbilisi municipality receiving GEL 490 million that is by GEL 50 million more compared to this year.
The Georgian Orthodox Church’s funding remains unchanged at GEL 22.8 million in 2012, according to the draft.