How the budget for the SIX months was fulfilled

Lali Chagelissvili

Analyzing the state budget for the six months we relied on the data of the Finance Ministry and it gives an opportunity to make an encouraging forecast.

From may 2005 high rates of tax proceeds have been observed. By this period total budget earnings and grants made up 152 million GEL, and expenditures – 175 million GEL. The most part of earnings fell on tax proceeds. The supply was characterized by the increase of subsidies and current transfers.
In January-May, 2005 the earnings of the state budget exceeded the predicted forecast by 8%. The observed high level of incomes in April was stipulated by privatization of the steamship line (93 million USD).
From the viewpoint of tax incomes, during January-May period of 2005, against the last year’s indicators, a 118% growth has been observed. Medium daily tax profits in May made up 8,1 million GEL, which is 115,7% more than April’s indicators. This considerably exceeds similar indicators of other months.
Non-tax incomes in January –May have exceeded the forecast by 12%, which is 19% more than the indicators of 2004. Capital incomes were also higher than predicted. The real indicator made up 212 million GEL instead of 20 million GEL envisaged by the forecast. Grants exceeded 52% in five months.
The observed tendency in incomes continued in June as well, which stipulated overfulfillment of the state budget. According to the data of the Finance Ministry, in 6 months 123,19 million GEL profits were mobilized to the state budget, which in its turn stipulated 2% overfulfillment of the 6 months schedule of incomes and grants. In July, 96,14 million GEL was mobilized to the budget in the form of tax incomes, non tax incomes – 8,54 million GEL, and 18,51million GEL in the form of capital incomes.
This kind of situation is not observed in connection with the planned expenditures. In January-May the volume of expenditures made up only 60% of the scheduled for six months sum of 1484 million GEL. By the end of May it made up 888 million GEL. More than a half of budget expenditures falls on subsidies and transfers, which make up 464 million GEL.
The indicator of capital expenditures remains low against the predicted indicator.
According to the 6 month’s data, it makes up 41,4% from the predicted indicator. In part of the highest expenditures – repayment of loan interests is the highest. Its volume made up 81% of the predicted indicator for the six months – that is 50 million GEL.
Compared to the period of January – June 2004 the incomes to the total budget obtained from privatization have increased from 2,7 million GEL to 260,1 in the first half of 2005. The incomes of the total budget in January-June 2005 exceeded 85,5 million GEL. In the similar period of the last year the total budget was with deficit (16,7 million GEL). For June 2005 the state debt made up 4526,3 million GEL. Including foreign debt 3013,3 million GEL.