1. Budget Review Georgia Second meeting of Senior Budget Officials
Ljubljana February 2006

2. General government expenditures and revenues 1996-2005 (as % of GDP)

3. General Government Deficits – 2002-2004, forecast 2005-2009 (as % of GDP)
2003
2004
2005
2006
2007
2008
2009
EU 15
1.1
2.3
1.4
2.0
2.2
n.a
Georgia
5.5
11.1
6.2
8.2
7.5
7.0
6.0
forecast.
Source: Eurostat; Basic Data and Directions (Georgian Government 2005)

4. General Government Debt, 1999-2010
Per cent of GDP

5. Recent major structural reforms:
Budget Systems Law 2004
Treasury reform
Energy sector
Privatisation and public enterprise management
Social security
Civil service reform

6. The Budget Time Table
1 March
Ministry of Finance begins budget preparations, begins macro economic framework and Main Directions
15 April
Main Directions are sent to Cabinet for agreement, then sent to Parliament
1 June
Parliament Financial Committee issues a report on Main Directions
15 June
Ministry of Finance issues Budget circular, including budget ceilings per spending agency
15 August
Line ministries submit detailed budgets to Ministry of Finance, begin of negotiations
5 September
Cabinet finishes discussing spending disagreements
15 September
Ministry of Finance submits budget bill to Cabinet
1 October
Budget bill sent to Parliament for review, recommendations and approval
1 January
Start of the budget year

7. Medium term expenditure framework allocating resources to sectors
based on: macro-economic forecasts
national priorities
sectoral priorities
resulting in: Basic Data and Directions document
allocating resources within sectors
based on: sectoral priorities
resulting in: draft budget

8. Parliamentary approval
Parliament makes recommendations, it does not make
amendments.
Accountability to Parliament has been strengthened by introduction of budget chapters by ministers.
Role of Parliament can be strengthened by further
improvement of the Basic Data and Directions document
and of the reports on execution.

9. Budget execution good progress towards Treasury Single Account
extensive preventive cash control
cash management can further be developed
public law entities have important role in service delivery
decentralised service provision still relatively limited

10. Accounting and auditing
quality of accounting greatly improved
Chamber of Control is influential and
plays an important role in the fight against corruption
internal control is a high priority for the coming years