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PMCG: State Budget Expenditures in 1H16 Rose by 7.4%

PMCG: State Budget Expenditures in 1H16 Rose by 7.4%

In the first half of 2016, the state budget expenditures rose by 7.4% (+277 million GEL) and constituted 47% of the 2016 planned expenditures (8.5 billion GEL).

According to the Policy and Management Consulting Group, this year we should expect the government to balance expenditures. The state budget expenditures have been fulfilled by 95.8%, according to the January to June plan.

Including, salaries part was fulfilled by 97.9%, goods and services – 91.7%, subsidies – 94.6%, grants – 95.2%, social provision – 99.9% and other expenditures – 87.7%.

“In the first half of 2016 the state budget tax revenues rose by 4.6% to 163.5 million GEL following growth in various unclassified taxes (up 30 times to 315.6 million GEL) and growth in excise tax rate (up 31.8% to 118.9 million GEL).

Revenues from VAT have declined by 1.2% (-186.6 million GEL). Revenues from income taxes decreased by 2.7% (-24.7 million GEL). Revenues from profits decreased by 10% (-56.8 million GEL). Revenues from imports taxes dropped by 8.4% (-3.0 million GEL), the analytical report by the Policy and Management Consulting Group reads.

In the first half of 2016, revenues from VAT exceeded the corresponding indicator of 2015 in only February (3.3%; 8.3 million GEL). The remaining months recorded considerable contraction: January – 25.1%, March – 17.2, April – 4.5%, May – 6.1% and June – 13.1%.

“In the first half of 2016 the state budget deficit made up 211.5 million GEL, up 194.1 million GEL compared to the same period of 2015 (17.4 million GEL), but it is lower compared to the 2016 January-June plan (479.6 million GEL).

The budget deficit broadened mainly after in the first half of 2016 the budget’s operation balance (revenues – expenditures) turned negative (-61.4 million GEL), while in 2915 the mentioned indicator was positive (86 million GEL), the report by the Policy and Management Consulting Group reads.