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Georgia Renews Forecasts of 2009 Public Budget

Business Materials 12 November 2008 18:46 (UTC +04:00)

Georgia, Tbilisi, 12 November / corr Trend N.Kirtzkhalia / "The Georgian government prepares to submit renewed forecasts of 2009 Public budget to the country's Parliament," Grigol Mgaloblishvili, prime minister, said at the meeting of government.

A tax on income of physical entities from 25% to 20% and taxations of dividends from 10% to 5% are envisaged to reduce in a draft public budget.

"Changes are directed towards population's social protection, and therefore, the increase in salaries and amount of pensions are envisaged along with reduction of tax rates," the prime minister said.

Salaries for employees of education will be increased by 25 laris from 1 January 2009 and by 25 laris from 1 September. Average monthly rate of pension will be increased by 5 laris from January 2-9 and by 5 laris from November. Increase by 10 laris is also envisaged in dependence on seniority within the frames of a pensionary pack. From 1 November 2009, increase by 5 laris is offered to help persons with limited opportunities.

Rate of help for poor persons will also increase from the next year. The number of insured poor people, will increase from 700,000 to 900,000 men and the social pack will increase by 169 laris.

From 2009, the number of poor beneficiaries also increases, 400,000 of the poorest citizens of the country will receive assistance in 30 plus 24 format. From 2009, subsequent 200,000 citizens will receive assistance in 20 plus 16 format, 300,000 -10 plus 8.

In accordance with changes, financing of projects to employ rural population is increasing by 57mln laris. With 20mln laris of them are allocated to purchase tractors, with 15mln of them will be distributed on all spheres to finance concrete small projects, with 20mln laris of them are designed for privileged loaning of rural economy. Only 500mln laris will be spent on construction of roads. With 120mln of them are designed for rural roads.

Total allocations of public budget total 6.25bln laris.

"Tighten belts harder" famous initiative of Georgian government will affect administrative expenses of the state and saved sum will be directed to social needs," the prime minister said.

Work over the draft budget continues and perhaps, social parameters will increase.

The correspondent can be contacted at [email protected]

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