2005 Draft Budget Unveiled

Georgian Prime Minister Zurab Zhvania presented the 2005 draft budget at a parliamentary session on December 22.
 
According to the draft budget the expenditures for next year are set at 2.2 billion Lari (approximately USD 1.2 billion) and revenues at 1.9 billion Lari (approximately USD 1 billion). 
 
Next year, the GDP growth rate is set at 6%, while the Georgian currency?s exchange rate against US dollar is forecasted to stay at 1.8 Lari per USD.
 
According to the draft budget, the defense and social spheres will become key priorities. The development of infrastructure and energy sector, as well as construction of roads will also be in focus as well.
 
The Defense Ministry will receive GEL 126 million; however, as Zurab Zhvania says, ?according to an additional privatization plan, through which the government expects to receive USD 200 million, of which approximately 80 million Lari will be directed to defense sphere and construction of the Georgian army.?

However, President Saakashvili announced on December 22 that the army will receive USD 70 million from the expected USD 200 million revenue from the privatization. So exact figures remain hazy.
 
Within the first six months of next year, the government intends to cover the entire internal backlog of salaries and pensions, which amounts to GEL 150 million. 
 
Zurab Zhvania also said that the government will keep its promise and double the current 14-Lari pension, as well as increase the minimal wage to 115 Lari.
 
Moreover, a Poverty Reduction and Economic Growth Program will be enforced, which will result in GEL 61 million being distributed among the most vulnerable citizens, whose incomes do not exceed 60 Lari per month.
 
According to the 2005 draft budget financing of other ministries is as follows:
 
Foreign Ministry ? GEL 31.8 million;
Justice Ministry ? GEL 40.5 million;
Interior Ministry ? GEL 129.2 million;
State Security Ministry ? GEL 26.6 million (as the Interior and Security Ministries are to merge, according to the latest changes, the budgetlines for these two could be adjusted);
Finance Ministry ? GEL 755.6 million;
Ministry of Labor, Healthcare and Social Protection ? GEL 558.4 million;
Energy Ministry ? GEL 119.5 million;
Economy Ministry ? GEL 95.3 million;
Ministry of Education and Science ? GEL 69.3 million;
Ministry of Refugees and Accommodation ? GEL 60.2 million;
Ministry of Agriculture ? GEL 119.5 million;
Ministry of Culture ? GEL 25.5 million;
Ministry of Environment ? GEL 34 million