The Committee heard the 3-month report of the implementation of the State Budget 2021 introduced by the First Deputy Finance Minister, Giorgi Kakauridze.

In March 2021, compared to 2020, GDP real growth achieved 4.0%, and the real reduction of the I quarter achieved 4.2%. GDP real reduction in January was 11.5%, in February – 5.1%, and the annual inflation level in March constituted 7.2%. The average inflation for the same period is on 4.8%. Compared to December 2020, the GEL exchange rate in March 2021 was devaluated by 4.1% constituting 3.41 GEL per USD.

“The foreign trade in January-March 2021 constituted 2 773.2 ml USD – 0.3% lower compared to 2020; export in this figure constitutes 820.6 ml USD, and import – 1 952.6 ml USD. The negative trade balance of Georgia in this period constituted 1 131.9 ml USD, which is 40.8% of the foreign trade total. In the I quarter, Georgia hosted 134.7 thousand international visitors, which is lower by 89.9% than in 2020. The tourism income constituted 53.6 ml USD – 87.5% lower than in 2020”, - the reporter noted.

The mixed budget income forecast for the same period was determined as 3 343 103.0 k. GEL. 3 378 227.5 k. GEL was mobilized in the accounting period – 101.1% of the forecast.

The State budget income forecast was determined as 2 954 508.0 k. GEL, while the mobilized amount constitutes 3 010 579.2 k. GEL – 101.9%. The tax forecast was determined as 2 652 820.0 k. GEL, while the mobilized amount constitutes 2 661 329.5 k. GEL – 100.3%.

The Committee Chair, Mikheil Sarjveladze asked whether the Law on Rights of Persons with Disabilities, Law on Social Workers, and Child Code now under implementation are exposed to a threat in the financial term. “All these laws are outlined according to the schedule and I believe, all those remedies stipulated under the law shall be fulfilled, though we cannot foresee our capacity for 2022. In my presumption, we will be capable to implement these laws, though the risks remain due to the global pandemic”, - the reporter responded.

He answered the questions about the penitentiary system, rehabilitation of the convicts and resocialization programs. “In April, our macro-economic index was positive and thus, none of the programs we schedule will be impeded”, - he added.

Deriving from the pandemic, new initiatives will be necessarily developed to facilitate economic restoration.

“Child poverty is the acutest challenge and requires the adequate response. We need to increase the efficiency of our social expenses and the ratio of social expenses towards the total budget may as well be increasing”, - the reporter added.

The Committee gave a positive assessment of the report.