2021-12-06
Today's Cabinet meeting, chaired by Georgian Prime Minister Irakli Garibashvili at the Administration of the Government, discussed 7 issues comprising its session agenda.
The total value of the country's economy next year will reach 65 billion GEL, meaning that GDP per citizen will exceed 5,500 USD, which is a historical maximum, Georgian Prime Minister Irakli Garibashvili stated during today's Cabinet meeting.
According to the Prime Minister, despite the pandemic, capital costs are not reduced in the 2022 draft budget.
"This year saw a significant economic growth. According to our projections, our economic growth will reach double digits by the end of the year to enable us to increase the budget by 1 billion 310 million GEL compared to the budget version initially approved this year. In addition, we have succeeded in reducing the debt from 60% of GDP, the country's external debt, to 51.1% in 2022. The combined budget will be 21.8 billion GEL. In 2022, we plan to achieve a 6% economic growth. The total value of the country's economy next year will reach 65 billion GEL, meaning that GDP per citizen will exceed 5,500 USD, which is a historical maximum. Next year, we will continue reducing the debt, which has grown due to the pandemic, and the budget deficit, which will make up 4.2%, with the government debt constituting 51.1% in 2022. Despite the pandemic, capital costs are not reduced in the 2022 draft budget, to make up 5.9 billion GEL, that is, 9.1% of GDP," the Prime Minister said.
According to the Head of Government, next year's budget, as promised, involves raises in public service, by about 10%. The Head of Government inquired with the Finance Minister when the salaries of public servants grew last. According to the Finance Minister, with the exception of individual directions like teacher, police, and army salaries that grew in 2019, the salaries in the public sector have been practically frozen since 2017.
"As promised, next year's budget involves raises in public service, by about 10%. This is not a one-off change. Raises will continue in subsequent years as well," Irakli Garibashvili stated.
In addition, from January of 2022, pensions for those over 70 will be 260 GEL, and 300 GEL for those aged 70 and over.
According to the Prime Minister, pensions for persons aged up to 70 years will make up 312 GEL, while reaching 360 GEL for those aged 70 and over.
Monthly assistance for veterans of war, 22 and 44 GEL, will grow to 100 GEL, the Head of Government added.
According to him, the 2022 budget allocates 114 million GEL for the construction of residential buildings for refugees.
"Concerning COVID-19 management, the 2022 budget allocates 500 million GEL to that end, while envisaging 300 million GEL for projects to be implemented in Georgia's regions," the Prime Minister emphasized.
The Head of Government also discussed the 2022 financing for individual Ministries.
"The Financing of the Finance Ministry will make up 105,404,800 GEL, up by about 16,000,000 GEL. The financing of the Ministry of Economy and Sustainable Development of Georgia will make up 932,000,000 GEL, of which about 300 million GEL will be channeled toward projects under the Produce in Georgia program. The financing of the Ministry of Regional Development and Infrastructure will make up 2.8 billion GEL, up by over 430,000,000 GEL. The budget of the Justice Ministry will be 310,568,400 GEL, up by 14,000,000 GEL. The financing of the Foreign Ministry will be 176,000,000 GEL, up by almost 6,000,000 GEL. The financing of the Defense Ministry will be 1 billion GEL, up by 72,000,000 GEL. The financing of the Interior Ministry will be 865,000,000 GEL, up by 85,000,000 GEL. The financing of the Ministry of Internally Displaced Persons from the Occupied Territories, Health, Labor and Social Affairs will constitute over 6 billion GEL. The budget of the Office of the State Minister for Reconciliation and Civic Equality will be 3,000,000 GEL, up by 500,000 GEL. The financing of the Ministry of Environmental Protection and Agriculture of Georgia will be 593,000,000 GEL. The financing of the Ministry of Education and Science will make up 1,694,000,000 GEL. The financing of the Ministry of Culture, Sport and Youth Affairs will be 357,000,000 GEL. For comparison, the total debt in 2022 will make up 60% of GDP, while GDP, the entire economy made up 58.5 billion GEL in the past. Consequently, we have succeeded in increasing GDP, our country's entire economy, by 6.5 billion GEL, an impressive achievement in light of the pandemic and crises," the Prime Minister said.
The Head of Government, during today's Cabinet meeting, also pointed out that the bill on online casinos will be initiated in the Parliament this week, so that relevant amendments may be carried out fast. Consultations with the legislative body on this issue have already been held.
Press Service of the Government Administration