“Rezonansi” daily writes that an analysis of 11 months of 2014 shows that this year’s state budget will not be fulfilled – despite the fact that a few days ago Finance Minister Nodar Khaduri stated that the budget would be 100% fulfilled. It is unclear what was the basis of the country’s main financier’s optimism when GEL 1.297 billion remain unspent.
However, the problems are not only in the expenditure but also in the revenue side of the budget. During the first 11 months of 2014, tax and other domestic revenues totaled GEL 6.5 billion that is 89.4% of the plan. Now the Ministry of Finance must mobilize GEL 774 million in December not to fail at least the revenue side – despite the fact that during the year more than 650 million were mobilized monthly.
The lag is mainly in three areas – income tax, profit tax, and VAT.
Thus, GEL 1 579 billion were mobilized in the budget as income taxes (a forecast amounted to 1.770) that is 89.2% of the plan.
GEL 690 million were mobilized to the budget as income tax that is 75.7% of the forecast which is GEL 912 million. The largest backlog is recorded in this part.
GEL 2 998 billion were mobilized to the budget through VAT that is 91.6% of the forecast (3. 274 billion).
The largest amount of GEL 735 million was mobilized through excise taxes that is 99.5% of the plan (739 million).
There are problems in the implementation of grants and loans. In January-November, the country received grants totaling GEL 200.9 million instead of the planned 144 million. With regard to loans, they amounted to GEL 1.137 billion which is 69.5% of the plan (1.636 million. ).
Thus, the credit plan has failed that was one of the causes of failure of the budget.
A situation is not better with spending of the existing funds. A failure to plan was recorded in most ministries. During the year, the spending plan amounts to GEL 9.08 billion but in reality in 11 months only GEL 7.725 billion were spent. To execute the budget, it is necessary to spend at least GEL 1.355 billion in the remaining month. According to experts, even if the Minister of Finance works a miracle, he will not be able to fulfill the budget.
The most catastrophic backlog is observed in spending funds by the Ministry of Infrastructure. During the year, it spent about GEL 70 million and now only in December it should spend GEL 182 million to fulfill the plan that is virtually impossible.
Ministry of Education should spend GEL 136 million which is also from the realm of fantasy. The Ministry cannot spend the allocated money while schools are destroying in the regions.
The only good news comes from the Ministry of Energy, which has spent on energy infrastructure more than planned.