About the performance of prognosis indicators of Central Budget Revenues from the privatisation of national property and lease of national property in 2003

According to the law on the Y2003 national budget of Georgia, revenues from national property privatisation will be set at 41.5 million Laris in the Central Budget with the purpose of covering the marginal amount of state budget deficit while revenues from the lease of state property will be set at 1 million. Dividend from state shared enterprises is 16 million Laris.

According to the provision of 31 August 2003, 22 952 thousand Laris from state property privatisation have been mobilised in the national consolidated budget, among them 18 598 thousand Laris have been mobilised in the Central Budget totalling the 45 % parameter set by the budget law while 4 354 thousand Laris have been mobilised in the local budget.
Eight months later the factual indicator of the central budget has exceed the last year indicator by 12 976 thousand Laris. However, it is behind the plan by 35%.
According to the IMF recommendation, revenues from the national property privatisation in 2003 should be subject to correction and will be set at the amount of 23 million Laris yet the same IMF gave visa for the growth of budget parameters in December 2002.
Therefore, according to the provision of 31.08.03, the annual correction parameter of the Central Budget is performed by 82% while consolidated one – at 78%. As for the first one, it is performed at 61%.
According to the law on the Y2003 national budget of Georgia, revenues from the lease of national property are set at 1 million. In the mentioned period revenues from the lease of national property made up 353 thousand Laris totalling 35% of annual planned parameter.
In August of this year, 7 486 thousand Laris were mobilised in consolidated budget from the privatisation of national property among them 7 321 thousand Laris were mobilised in the Central Budget, 165 thousand Lari – in the local budget and 30.6 thousand Lari were mobilised in the Central Budget from the lease of national property.
According to the provision of 31.08.03 of 2003, sums from the privatisation of national property (including healthcare and defence funds) totalled 23 370 thousand Laris with the share of defence fund being 166 thousand Laris.
3 269.0 thousand Laris will come the central budget by the end of 2003 (JSC train-repairing factory, Embassy of China). Amounts from territorial entities will also be added to it. Thus, factual budget implementation will make up 23 000 thousand Laris in 2003 though the fate of 16 million dividends is not yet clear. At the same time, the present numerical indicators of the Y2004 budget draft testify to the fact that the government still uses the vicious approach with such indicators being planned for the artificial balancing of budget deficit, which leads to the deterioration of this year revenues in 2004.