The government has submitted to the Parliament initial draft of the 2017 state budget, which sets revenues at GEL 8.71 billion and expenditures at GEL 8.78 billion.
Budget parameters in the initial draft are tentative and are expected to be revised in the process of discussions by the new parliament, which should be elected as a result of the October 8 elections.
The government expects GEL 8.17 billion in tax revenues next year, up by GEL 190 million from this year’s target.
The government estimates revenues from corporate profit tax to decline from this year’s target of GEL 980 million to GEL 523 million next year due to corporate income tax reform, which is set to go into force from January, 2017, when corporate income tax will only apply to distributed profit; undistributed profits, reinvested or retained, will not be subject to income taxation.
Revenues from value added tax are set at slightly over GEL 4 billion, up from this year’s target of GEL 3.8 billion; personal income tax target is set at GEL 2.43 billion in 2017, up from 2016’s GEL 2 billion; revenues from excise tax are expected at slightly over GEL 1.08 billion, up from this year’s GEL 1.01 billion, according to initial draft.
The government projects 4% economic growth next year. This year government’s forecast for economic growth stands at 3%; economy grew 2.7% in the first eight months of this year.
Breakdown of funding per ministry in the initial draft is as follows:
- Ministry of Healthcare and Social Protection – GEL 3.33 billion (GEL 3.162 billion in 2016);
- Defense Ministry – GEL 743 million (GEL 670 million in 2016; GEL 667.3 million in 2015);
- Interior Ministry – GEL 585 million (GEL 595 million – in 2016);
- Ministry of Regional Development and Infrastructure – GEL 1.086 billion (GEL 950 million in 2016);
- Ministry of Education and Science – GEL 1.025 billion (GEL 971.3 million in 2016);
- Ministry of Agriculture – GEL 238.1 million (GEL 321.3 million in 2016);
- Finance Ministry – GEL 85 million (GEL 90 million in 2016);
- Ministry of Economy and Sustainable Development – GEL 97.5 million (GEL 95.1 million in 2016);
- Ministry of Energy – GEL 121 million (GEL 135 million in 2016);
- Justice Ministry – GEL 65.6 million (GEL 70.5 million in 2016);
- Prison system ministry – GEL 146 million (GEL 153.8 mln in 2016);
- Foreign Ministry – GEL 105.6 million (GEL 110 mln in 2016);
- Ministry of Culture and Protection of Monuments – GEL 96.4 million (GEL 97 million in 2016);
- Ministry of Sport and Youth Affairs – GEL 98.3 million (GEL 90 million in 2016);
- Ministry of Environment Protection – GEL 37.9 million (GEL 42.1 million in 2016);
- Ministry for Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees – GEL 85 million (GEL 85 million in 2016);
- State Ministry for Reconciliation and Civic Equality Office of the State Minister for Reintegration – GEL 1.35 million (GEL 1.35 million in 2016);
- Office of the State Minister for European and Euro-Atlantic Integration – GEL 3.1 million (3.1 million in 2016);
- Office of the State Minister for Diaspora Issues – GEL 1.2 million (GEL 1.2 million in 2016).
According to the initial draft, the State Security Service will receive GEL 110 million next year that is by GEL 10 million more compared to this year.
Parliament’s funding is set at GEL 52 in next year’s initial draft of the budget – the same as this year; funding of the President’s administration will also remain unchanged at GEL 9.8 million. According to the initial draft, the government’s administration will receive GEL 17 million next year, GEL 3 million less than this year. The government’s reserve fund will remain unchanged at GEL 50 million and the President’s discretionary fund will receive GEL 5 million, same as this year.
Next year, when local elections are planned in October, the Central Election Commission will receive GEL 60.5 million; CEC’s funding this year is set at GEL 58.5 million.
Funding of the Georgian Orthodox Church remains unchanged at GEL 25 million.
According to the initial draft, funding of Georgian Public Broadcaster (GPB) will also increase from this year’s GEL 44.1 million to GEL 47.5 million.