On October 4 Georgian Finance Minister Kakha Baindurashvili introduced basic parameters of the 2011 state budget. The government introduced a draft budget law last week and the parliament’s bureau is expected to discuss the bill on October 5.
At the October 4 news conference, Finance Minister Kakha Baindurashvili said budget revenues and expenditures account for 6.96 billion GEL, down 30 million GEL compared to the 2010 state budget.
“Our priorities have not changed. The bill serves cutting basic administrative costs. A basic part of the state budget will finance the educational, social, healthcare and infrastructural projects”, Baindurashvili noted.
The Minister continued the education sector expenditures will rise by 16 million GEO, costs for infrastructural projects will grow by 234 million GEL. The healthcare sector financing will also increase.
Administrative costs will be reduced and no state-financed offices will ba able to increase teh staff salaries, Baindurashvili noted.
“The costs for acquiring new automobiles have been minimized. Only specialized automobiles will be acquired”, Baindurashvili said.
The 2010 state budget bill calls for 4.5 percent economic growth.
The tax revenues will stand at 5.3 billion GEL, 76 percent of total budget.
The state budget expenditures account for 29 percent of GDP in 2011, while the figure will stand at 25 percent as of 2013.
The 2011 state budget deficit will equal 4.3 percent.