New government of Georgia changed general directions of existing draft budget in order to start fulfillment of pre-election promises. Financing of priority directions for citizens of Georgia has increased through decrease and optimization of definite expenses. Draft budget which was worked out by the previous government became socially oriented within a very short period of time (in two months).
Today the country has a socially oriented budget. This is the first step towards development of fair state.
Financing of following fields have increased significantly in the budget of the year 2013:
Pension provision
Pensions of all pensioners and disables of the 1st category will increase and will become equivalent to the pensions of pensioners who are 67 years old and above i.e. it will be raised to GEL 125. Pensions of all pensioners and disables of the 1st category will increase by 20%. It will become equal to minimum of subsistence, i.e. raise to GEL 150; Disability pension will increase by 42% and will become GEL 100; Pension of those people who have lost breadwinner which equals to GEL 55 will be increased by 81% and it will become GEL 100; Pension of victims of political repression which equals to GEL 55 will increase by 81% and it will become GEL 100.
Universal healthcare insurance
All citizens who don't have minimal state insurance will get minimal insurance package from February 2013.
All citizens of Georgia will get basic insurance package from July 1.
Basic insurance package includes insurance of urgent and planned surgeries, researches, diagnostics and other services.
Nontaxable minimum
The most important innovation of the year 2013 will be introduction of nontaxable minimum. It means that employees whose annual salary is GEL 6,000 or less will be able to get refund of income tax paid for GEL 1,800 received in the form of salary after the end of the year.
Refugees and IDPs
Budget of the Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees has increased by 92% - from GEL 25 million to GEL 48 million. GEL 50 million is allocated from the budget for construction of houses for refugees and IDPs.
Funding in the budget of 2013 compared to the budget of 2012:
Healthcare budget is doubled;
Budget of the Ministry of Agriculture is increased by 61.8%.
Budget of the Ministry of Corrections and Legal Assistance of Georgia is increased by 39.5%;
Budget of the Ministry of Labor, Health and Social Affairs is increased by 29.5%.
Fund of projects to be implemented in the regions of Georgia is increased by 25.7%.
Budget of the Ministry of Education and Science is increased by 11.8%.
Following expenses were reduced in the budget of 2013 compared to the budget of 2012:
Expenses of the Administration of the President of Georgia
Expenses of the Government's Administration;
Expenses of the National Security Council;
Expenses of Governors;
Expenses of the Ministry of Finances of Georgia;
Expenses of the Ministry of Economy and Sustainable Development;
Expenses of the Ministry of Defence of Georgia;
Expenses of the Ministry of Internal Affairs of Georgia;
Expenses for holding of different kinds of concerts;
Package of main reforms for the year 2013
Working on reforms has been started almost in every field after coming of new government. Works have been already started and following activities are planned for the year 2013: Reform of antimonopoly legislation; Reform of labor code;
The Ministry of Finances - Improvement of business environment - Reform directions
Simplifying of tax code;
Reduction of fines;
For this reason:
a) Deliberative Council will be created at the Ministry of Finances with assistance and participation of international organizations (USAID; USA Department of Treasury etc.). Council will consist of experts and representatives of non-governmental organizations and it will work on simplifying of tax code;
b) Business Council will be created within the Ministry of Finances by participation of businessmen and business associations, which will discuss other amendments to be made to tax code.
c) Besides the representatives of different institutions Dispute Resolution Board will also consist of representatives of non-governmental sector who will be changed according to rotation rules.
The Ministry of Agriculture - Reform directions
Creation of 1 billion fund of agricultural development for financing of new enterprises.
Draft Law Package on Regulation of Agricultural Cooperatives is prepared;
Relevant amendments of tax code are being processed which will include tax privileges for above-mentioned cooperatives and other people employed in the field of agriculture.
Creation of Regional Information-Consultation Centers;
Creation and implementation of population land registration program;
Program regarding provision of agricultural machinery for agricultural field; Training program for their technical personnel; Program of intensive rehabilitation of irrigation system; Design of rehabilitation of 15 major irrigation channels is finished which gives an opportunity of irrigation of 3 times more area compared to previous years.
The Ministry of Education and Science - Reform directions
- Full depoliticization of Resource Officer Service. Draft Amendment to Georgian Law on "General Education" which is worked out by the Ministry has determined rights and obligations of resource officers, Resource Officer Service will not have to intervene into educational process and now its duty will include protection of school's security;
- New model of school-leaving exams is worked out;
- Functions and duties of Resource Centers will be changed. Resource Center will carry out monitoring of educational process at schools;
- Provision of transport for pupils of public schools who have to walk long distances in order to get to schools. 9000 pupils from 190 schools will be provided with transportation from the second semester of 2012-2013 educational year;
- Working on vocational education restoration project has started;
- State educational grant financing is doubled, GEL 10.2 million are allocated from the budget.
- Basic salary of public schools will increase by GEL 70-80 per month. GEL 50 million is allocated for this purpose.
The Ministry of Regional Development and Infrastructure
Working has started for implementation of reforms in self-governance with participation of Georgian and foreign experts and donor organizations. Documents reflecting strategy of decentralization of Georgian Government and its stages will be worked out and agreed in the nearest future.