“We have had very strong economic growth for the past two years and we continue advancing our economy at a high pace this third year”. It was announced by Irakli Garibashvili, Prime Minister of Georgia at the Executive Government Meeting today.

As the Prime Minister noted, the first Draft State Budget for 2024 is being considered today for ultimate submission to the Parliament of Georgia.

“We are considering a first Draft State Budget for 2024 today for ultimate submission to the Parliament of Georgia. I wish to share several important pieces of information with the general public towards this end. Prior to that, I wish to once again summarize the economic trends witnessed in the past years. You are well aware that we have had very strong economic growth for the past two years and we continue advancing our economy at a high pace this third year. We expect the annual economic growth to reach 7% this year. We have adjusted the State Budget of the current year accordingly. It was earlier planned with an assumption of 6.5%, though the original forecast was very conservative at 5%. Also, I wish to note that it just became known that actual economic growth has been 7% in the first 8 months of the year. Of course, considering all the factors and circumstances that are currently witnessed all over the world and in the region especially, it is a very significant progress” noted the Prime Minister of Georgia.

As the Head of Government of Georgia stated, the State Budget for 2012 was 8.5 BLN GEL, while the Consolidated Budget of 2024 will be 27.8 BLN GEL. It will triple, which is very rewarding for everyone. According to the assumptions of the Government of Georgia, the Deficit will be 2.5%, while the Public Debt to GDP Ratio will be 38.2% in 2024.

“As for the State Budget of 2024, we have planned it in a quite conservative manner again. It is based on the assumption of 5.2% economic growth. In the medium term, real economic growth is projected to be 5% as well. Average inflation is forecasted to be contained within the benchmark at 2.8%. Nominal Gross Domestic Product (GDP) is 85.370 BLN GEL, which will be a tremendous progress, of course. Herewith, let me remind the general public for comparison purposes that when we inherited a quite heavy legacy in 2012, the State Budget was 8.5 BLN GEL inter alia. GDP at that time was about 27 BLN GEL. It has almost tripled in the past 11-12 years. GDP will exceed 85 BLN GEL. It means that GDP Per Capita will exceed 8600 USD next year. This year it will be 8100 USD already and the State Budget of the current year is quite ambitious as you may well know. Also, let me tell you that according to our assumptions GDP will be 108 BLN GEL by 2027, which means that GDP Per Capita will reach 11 000 USD. Herewith, let me remind the general public that the State Budget in 2012 was 8.5 BLN GEL, while the Consolidated Budget will be 27.8 BLN GEL in 2024. For comparison, it was 8.5 BLN GEL in 2012 and will be 27.8 BLN GEL in 2024. It has been tripled as well and it is very rewarding for us all, of course. As for the deficit, let me tell you that it will be 2.5% by our assumptions, while the Public Debt to GDP Ratio will be 38.2% in 2024” added the Prime Minister of Georgia.

Irakli Garibashvili, Head of Government of Georgia noted at the Executive Meeting today that State Budget Allocations will increase by 870 MLN GEL for healthcare and social security. It will include a rise in age pensions. Individuals aged 70 and above will be paid 50 GEL higher pensions totaling 415 GEL a month.

As the Head of Government of Georgia noted, the age pension in the same category will be almost 500 GEL for pensioners living in high-terrain regions of the country.“As for the main directions, State Budget Allocations for Healthcare and Social Security Programs will be increased by 870 MLN GEL. It will include a rise in age pensions. Individuals aged 70 and above will be paid 50 GEL higher pensions totaling 415 GEL a month. Herewith, let me tell you for comparison reasons that age pensions were 110 and 125 GEL a month in 2012, while we pay 415 and 500 GEL a month; latter in the high terrain regions. It is a genuine result of our performance. Pensions paid to individuals aged below 70, will be increased by 20 GEL at 315 and 380 GEL; latter in the high terrain regions.

In addition and as for the other programs, here also funding for Social Programs will reach 5.6 BLN GEL. We have earmarked 1.6 BLN GEL for Healthcare Programs, which include a 10% pay raise for the Primary Healthcare Personnel” noted Irakli Garibashvili.State Budget envisages a pay raise for all the civil servants as well in the value of 10%” added the Prime Minister of Georgia.

As the Head of Government of Georgia noted, law-enforcement bodies received a 20% pay raise last year and the total increase turned out to be 45% in the past 2 years. This initiative applied to law-enforcement bodies: police, army and special services.According to the Head of Government of Georgia, other civil servants had their salaries and wages increased by 30% in the last two years.

“I wish to say that we increased the payroll in the law-enforcement bodies by 20% last year and ended up having a 40-45% increase in the last 2 years. It applied to all the law-enforcement bodies: police, army and special services. Other civil servants – all of them – had their salaries and wages increased by 30% in the last 2 years, including this new raise, which is very important. We will, of course, maintain this trend and continue incentivizing our civil servants by raising their salaries. State Budget Allocations will increase for the Ministries of Internal Affairs (MIA) and Defense (MOD). Significant reforms will be carried out within the Ministry of Education and we will be announcing major novelties. I will be sharing information about it later. State Budget Allocations for education will be increased by 470 MLN GEL. In addition, I wish to say that we are scrutinizing the opportunity of pay raise for public school teachers and will be presenting a new concept together with the new Minister [of Education] at the end of October. As for the construction and rehabilitation of public school buildings, 350 MLN GEL has been allocated and the actual process will be launched at high speed. Construction and rehabilitation of kindergartens will benefit with 225 MLN GEL. We have initiated work towards this end as well. Pay raise will be considered for the kindergarten employees” noted Irakli Garibashvili, Prime Minister of Georgia.According to the Head of Government of Georgia, 6 BLN GEL will be channeled towards the infrastructure from the Consolidated Budget of 2024, out of which the earmarking for the Ministry of Infrastructure and Regional Development (MIRD) will be 3.4 BLN GEL. As the Prime Minister of Georgia noted, 700 MLN GEL will be used for the development of road infrastructure in 2024. It will include the construction of highways with 1.2 BLN GEL.

“As for the infrastructure, 6 BLN GEL will be channeled towards the infrastructure from the Consolidated Budget of 2024, out of which the earmarking for the Ministry of Infrastructure and Regional Development (MIRD) will be 3.4 BLN GEL; 700 MLN GEL will be used for the development of road infrastructure in 2024. It will include the construction of highways with 1.2 BLN GEL. Another 1.9 BLN GEL is envisaged for the development of municipal infrastructure; 500 MLN GEL for the water supply and sewage systems. Overall, upgrades of the education infrastructure will – as I already noted and I will repeat – cost in total 700 MLN GEL next year. We plan to spend 170 MLN GEL on the development of infrastructure for tourism next year” added the Prime Minister of Georgia.According to the Head of Government of Georgia, 300 MLN GEL is intended for the development of Small and Medium Businesses (SME), while 560 MLN GEL will be spent for the development of agriculture and 18 MLN GEL for funding the state-led programs in the area of environmental protection. Irakli Garibashvili noted that the first Draft State Budget for 2024 was presented today and active work is intended on it with line ministries and other government agencies in October. The Second Draft will be presented by November 5 and work will grow into the Third Draft in November.“As for the development of small and medium enterprises (SME), we intend to spend 300 MLN GEL in 2024; 560 MLN GEL will be spent for the development of agriculture and 18 MLN GEL for funding the state-led programs in the area of environmental protection. I think that we succeeded with a rather good State Budget for 2024 in general. Let me still repeat that it is the First Draft. Active work is intended on it with line ministries and other government agencies in October. Second Draft will be presented by November 5 and later work will grow into the Third Draft in collaboration with the Parliament of Georgia in November. It is the straightforward scheme that I wanted to share with you. In closing, let me say that 85 BLN GEL will be the GDP in 2024; GDP Per Capita will be 8600 USD and for comparison purposes – let me repeat again – it will be a State Budget with almost triple GDP rise, if we compare it with a State Budget of 2012. I have already told you that the State Budget will be 27.8 BLN GEL in 2024 and precision on other aspects will follow later as we cooperate with the Parliament ” concluded Irakli Garibashvili, Prime Minister of Georgia.