On May 8, 2012 was held the meeting of the Georgian Government. The agenda included 71 items.
Before the meeting started, the Prime Minister of Georga, Nika Gilauri talked about 2012 budget. We present the Prime Minister's speech:
"We have to discuss quite many issues at the meeting, but I would like to emphasize the most important one. This is a project of changes to 2012 state budget.
The first discussion was carried out at the previous government meeting and a respective project has been sent to the Parliament. Today we are having additional discussions. I would like to tell you that according to last quarter analysis, we can increase economic growth prognosis from 5% to 6%. This is a prognosis of the International Monetary Fund as well. Although, deflator amounts from 6% to 5%, i.e., inflation index is decreasing from 6% to 5%. In total, GDP of the country amounts to GEL 26 billion 967 million; this is about GEL 27 billion.
If calculated according to the present exchange rate, GDP amounts up to USD 3,600 per capita. I would like to recall that this is approximately four times as much as GDP per capita in Georgia in 2003. This amounted up to USD 900 then.
As for the budget itself, incomes are increasing by GEL 200 million. There are two main changes in incomes. We take more grants than we had previously meant, and income from licenses is growing quite seriously - by USD 100 million. We have slightly higher growth as this is shown by the past first quarter. Licenses and incomes have grown really significantly.
Changes are respectively reflected in section of expenses as well. We have implied additional charges for students' insurance program. I will work together with Zura and Dima on this issue today and details will be given to the public by the Ministers in the future. Additional charges have also been implied for purchasing embassy buildings, for example. We would like to buy several embassies during this period. Additional charges have been implied to equip with inventory a new building under construction for defendants diseased with tuberculosis. We have to buy additional snow removal machines as we have seen how hard the results of much snow could be in Georgia in February and we have implied additional charges for this. Additional charges have also been implied for development of football infrastructure and there are many minor projects, especially, regional ones. Kakheti and Imereti projects are to be mentioned here. These two major projects are really to be emphasized. These are projects implied by assignments of the World Bank, according to which growth of infrastructure and tourist rehabilitation of Kakheti and Imereti Regions are being implemented. Of course, co-funding from the budget of Georgia is necessary. This co-funding has been implied in our budget as well. Apart from this, we have to finish Kopitnari Airport during the current year.
Many small and very important projects have been implied in the new version of the budget. We will send the last version to the Parliament during the next week and upon this is approved we will give detailed information to the public in absolutely all directions.
Respectively, I would like to ask all the Ministers to hold detailed presentation on changes we propose to the public."
Prime Minister's Press Service