Adjustment to the State Budget of 2015 have been approved on July 17, 2015 with 78 MPs voting pro, 18 – cons. Mr. Giorgi Kakauridze, Deputy Minister of Finance of Georgia and Parliamentary Secretary presented the draft adjustments to the ad-hoc session of the Parliament of Georgia.
Economic and political developments in the region and worldwide, having a significant impact on the economy of Georgia, have led to the adjusted economic growth projections downwards from original 5 to 2 per cents. It is important that budget deficit indicator remains 3% of gross domestic product (GDP).
Projected tax revenues are reduced by 200 MLN GEL under the approved adjustments of the State Budget of 2015, though inflow of funds from other sources will be increased as follows:
Total Budget Revenues
Budget support will be increased by 41.0 MLN GEL on the grounds of negotiations held with donor agencies, while borrowings will increase by 185.0 MLN GEL. In total additional 226.0 MLN GEL will be received.
Proceeds from the licensing of fourth generation mobile telephony will be additional 150.0 MLN GEL.
Other Revenues will grow by 20.0 MLN GEL.
Treasury Liabilities (domestic debt) will be reduced by 100.0 MLN GEL. Investment credits will decline by 71 MLN GEL.
Considering all the above-mentioned, budget revenues will increase by about 25.0 MLN GEL in contrast with the existing projections.

Budget Expenditures
As for the expenditures, adjustments made to the State Budget of 2015 envisage the reduction of budget allocations to spending institutions by 160 MLN GEL, including the earmarkings to budgetary organizations – by 90 MNL GEL, while donor-funded projects – by 70 MLN GEL. These funds will be redirected to the overall budget expenditures. As a result, budget expenses will not change and still amount 9 575.0 K GEL.
Budget funding is reduced with the following breakdown:
• Allocations to the Ministry of Interior of Georgia – by 10.0 MLN GEL;
• Allocations to the Ministry of Defense of Georgia – by 5.0 MLN GEL;
• Allocations to the Ministry of Education and Science of Georgia – by 12.0 MLN GEL (it is only 1.5% of their budget. None of the projects launched by the Ministry will be put on hold. Expenditures will be reduced only through the cost savings);
• Allocations to the Parliament of Georgia – by 6.0 MLN GEL;
• Allocations to the Ministry of Finance of Georgia – by 9.0 MLN GEL;
• Allocations to the Ministry of Agriculture of Georgia – by 8.0 MLN GEL;
• Allocations to the Ministry of Penitentiary and Probation – by 3.5 MLN GEL;
• Allocations to the Ministry of Environment of Georgia – by 2.0 MLN GEL.

Social security line items of the budget have not been adjusted.
Allocations for the Ministries of (a) Regional Development and Infrastructure, (b) Agriculture and (c) Energy will be reduced under projects financed by donor agencies.
Cost savings made by sending institutions under their budget allocations will be directed to Budget Funds (105 MLN GEL) to mitigate the aftermath of the natural disaster and to finance other infrastructure projects.
Budget allocations for external debt service and repayment will also increase (53.0 MLN GEL).

In addition, additional budget revenues - 25.0 MLN GEL, will be accumulated at the budget account (325.0 MLN GEL instead of 300.0 MLN GEL).