Georgia: The Committee on Health Care and Social Affairs listened to the information submitted by the Government of Georgia on the “Annual Report on the Execution of the State Budget of Georgia for 2021” and the “Basic Macroeconomic Forecasts and Main Directions of the Ministries of the Georgia”.
The First Deputy Minister of Finance, Giorgi Kakauridze, briefed the committee members on the main macroeconomic and fiscal parameters of the past year, as well as the main macroeconomic forecasts for the coming years.
“Last year turned out to be quite good, even though the first quarter was negative – the economic decline was 4.1%. A high rate of economic growth emerged from April and the growth dynamics continued until the end of the year. “Finally, according to the actual data of last year, we have achieved economic growth of 10.4%, which means that not only has the decline recovered, the Georgian economy has grown by about 2.9% compared to 2019,” – said Giorgi Kakauridze.
Speaking about the economic forecasts for the coming years, the speaker noted that the country started the budget with 6% economic growth this year, however, the situation in the region was different when approving the budget.
“Developments in Ukraine have significantly changed the world economy. The war in Ukraine has a 2% impact on our economy, however, we must maintain 6% growth at this stage. “In 2023, economic growth will be 5.5%, and then – an average of 5.2%,” – said Giorgi Kakauridze.
According to the rapporteur, the performance of both the revenues and expenditures of the consolidated budget is high, with a forecasted revenue of 101.6%.
The budget execution rate is high in the ministries as well.
According to him, the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs, which has the largest budget, has spent 6 billion 466 million GEL and the execution rate is 100%. The Deputy Minister noted that the absorption rate is high according to individual programs as well.
The rapporteur also answered questions from committee members.
The Chairman of the Committee on Health Care and Social Affairs, Dimitri Khundadze, focused on the issues on which, according to him, the allocation of additional funds in next year’s budget will be important.
“Primary health care needs to be strengthened, because it is one of the most powerful levers for the system to be properly managed and efficient. It is true that we have increased the budget for the diabetes management program, but this program will need even more financial support. There is a problem in terms of mental health, which is related to the shortage of bedding , and we will need some intervention in this direction as well. Many activities have been added in terms of rare diseases, but the funding problem remains. This also applies to the dialysis program, consumables , medications and more. “Priorities can be set in many areas and it will be important if they are taken into account when determining next year’s budget priorities.”- said Dimitri Khundadze.
