Issue 20: Expenses and Deficit of the Consolidated Budget 2013-2014

The completion rate of the expenses of consolidated budget 2013 is 91%, due to unused recourses by the sectoral ministries.

In 2013, the expenses on infrastructure declined (-24%, -362 mln.GEL), but the expenses on social benefits increased (23.5%, 437 mln.GEL) compared to 2012.

In 2014, planned expenses on social benefits (22.5%, 516 mln.GEL) and expenses on infrastructure (46%, 523 mln.GEL) are higher compared to the corresponding actual indicators of 2013. In 2014, the planned expenses on social benefits exceeds (12%, 301 mln. GEL), but the planned expenses on infrastructure is lower (-8%, -145 mln.GEL) compared to the planned expenses of 2013 budget.

 In 2013, the indicator of budget deficit (operating balance (income-expenses) – net acquisition of nonfinancial assets (expenses on infrastructure-privatization) is -301 mln.GEL, which is -1.1% to GDP 2013. In 2014, both deficit (181%) and nominal GDP (9%) are planned to increase, but the growth rate of deficit is higher than the growth rate of  GDP. Thus, the deficit to GDP is expected to -2.9%.

In 2013, the indicator of total public debt is 9,319 mln.GEL and the indicator of debt to GDP is 34.5%. In 2014, the public debt is planned to increase (15%, 1,396 mln.GEL) and the indicator of debt to planned GDP will be 36.5%.

In 2013, the indicator of the total volume of actual ex-penses of consolidated budget (7,830 mln.GEL) is lower (-9.2%, -795 mln.GEL) than the indicator of planned ex-penses (8,625 mln.GEL) in corresponding period.

In 2013, the indicator of the actual expenses on the fol-lowing sectors: purchases of goods and services (-17%, -213 mln.GEL), interest (-24%, -76 mln.GEL), social ben-efits (-9%, -215 mln.GEL) and infrastructure (-37%, -668 mln.GEL) are lower compared to the planned expenses on the corresponding sectors.

In 2013, the indicator of the actual expenses on the fol-lowing sectors: compensation of employees (8%, 99 mln. GEL), subsidies (21%, 94 mln.GEL) and other expenses (18%, 184 mln.GEL) are higher compared to the planned expenses on the corresponding sectors.

In 2013, the expenses on social benefits increased (24%, 437 mln.GEL) compared to 2012. In 2014, the expenses on social benefits is planned to increase compared to the actual expenses of 2013 (22%, 516 mln.GEL), as well as compared to the planned expenses of 2013 (12%, 301 mln.GEL).

In 2013, the expenses on infrastructure decreased (-24%, -362 mln.GEL) compared to 2012. In 2014, the expenses on infrastructure is planned to increase compared to the actual expenditure of 2013 (46%, 523 mln.GEL), but it is lower than the indicator of planned expenditure of 2013 (-8%, -145 mln.GEL).

In 2014, the expenses on compensation of employees (7%, 103 mln.GEL) and on purchasing goods and servic-es (7%, 68 mln.GEL) are planned to increase compared to the actual expenses of 2013.

In 2013, the operating balance of the consolidated budget (income-ex-penses) decreased (-33.2%, -353.3 mln.GEL) compared to 2012. In 2013, the indicator of net non-financial assets is 1012 mln.GEL. Thus, the indicator of the overall balance (deficit) (operating balance – Net acquisition of nonfinancial assets) is -301 mln.GEL, which exceeds (95%, 146 mln.GEL) to the corresponding indicator (-154.7 mln.GEL) in 2012.

In 2013, the indicator of the deficit to GDP is -1.1%, while in 2012 the corresponding indicator was -0.6%. In 2014, the deficit  is planned to grow (181%, 544 mln.GEL) in comparison with 2013. Corresponding-ly, the indicator of deficit to GDP will be -2.9%.