The Faction “National Movement” discussed the draft state budget 2020 introduced by the Deputy Finance Minister, Giorgi Kakauridze, speaking about the budget implementation, scheduled changes and forecasts.

The economic growth was planned with 4%; the tax income part of the mixed budget is reduced by 1 bl. 545 ml GEL, plus other income and privatization indices – the sources left without the grants and credits, which totally constitutes reduction of 1 bl. 800 ml GEL.

Providing the single-manner expenses, the budget deficit achieves 8.5% and shall return to 3% for 3 upcoming years. The expenditures part has been reduced in all the agencies as at the central so at the municipal levels. The mixed budget is totally reduced by 600 ml GEL. The budget also reflects the anti-crisis plan funds – 3.4 bl. GEL. “450 ml GEL in the budget is allocated for the social aid for the population – 1200 GEL allocated in parts for 6 months. 250 ml GEL is envisaged in the tax remission part, 75 ml GEL as the aid for the self-employed persons, 170 ml GEL shall be consumed to cover the utility costs of the population, 85 ml GEL is envisaged for various social groups, and besides, the budget reflects 133.5 ml GEL for StopCovid fund to be consumed on the healthcare programs, treatment of the infected persons, equipment of the quarantine areas etc. 45 ml GEL is allocated for healthcare costs, and 285 ml Gel for the treatment costs, 60 ml GEL is allocated for infrastructural components in healthcare, the credit and grant scheme is defined with 330 ml GEL, the hotel interest costs and subsidies constitute 70 ml GEL, exemption of the travel agencies from property fees costs 45 ml GEL, and the small grant financing constitutes 20 ml GEL, support to the construction sector and accommodation of IDPs takes 40 ml GEL, support of agriculture takes 139 ml GEL, two large components – excessive VAT refund with 600 ml GEL; and long-term liquidity for the commercial banks with 600 ml GEL. In total, it is the 3,4 bl. package of the anti-crisis plan”, - G. Kakauridze noted.

He dwelt on the financing of certain institutions and stated that despite the reduced financing, none of the projects are annulled, only postponed.

The municipalities in terms of tax incomes lost 250 ml GEL and 70 ml GEL is envisaged in the budget in capacity of the transfer to partially indemnify the loss. The state financing of various projects is reduced with 547 ml GEL, though there is an extra 2 ml GEL.

Ultimately, the expenditure part is increased by 1 bl. 490 ml GEL to constitute 15 bl. 923 ml GEL. These are the key parameters of the budget providing the anti-crisis plan developed by the Government and all its paragraphs have been introduced to the society”, - the reporter noted.

The Deputy Chair of the Faction, Salome Samadashvili disapproved the draft and offered the version by the Faction – 1000 GEL per citizen from the budget and 500 GEL per child in a single manner. She also noted that the property and income taxes shall be reduced. The large business shall pay half of the taxes, and the average and petty business shall be exempted from the taxes similar to the micro-business the annual circulation of which does not exceed 500 000 GEL.

According to her, the bank liabilities shall be postponed with 3 months and the enforcement proceedings shall be suspended. According to the Deputy Minister, the version of the National Movement will be fiscally devastating for the country.

According to G. Kakulia, the anti-crisis budget is provided in the draft with the updated macro-economic and fiscal parameters, as well as the expenditures.

“More than half of the budget is formed with foreign and domestic debts and small grants. This budget with its macro-economic context posts the risks to the country. Consumption and distribution of the budget are ineffective and nothing in fact has been reduced in the budget other than the costs failed to be implemented due to the state of emergency. This budget fails to meet the requirements of the population and so, the Faction rejects it”, - the Chair of the Faction, Roman Gotsiridze noted.