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• HEARING OF MINISTER OF FINANCE WITHIN MINISTERIAL HOUR

  The Parliament heard the Minister of Finance, Lasha Khutsishvili, within the Ministerial Hour, reporting on the activities and future plans of the agency.
  According to the Minister, 10.1 percent was the real GDP growth in 2022, which was still double-digit. This information was provided by the National Statistical Agency. According to Lasha Khutsishvili, the economy's level reached its pre-pandemic trend in 2021–2022, and considerable growth persisted in 2023 (8.4% growth in January). He claims that in 2022, greater economic conditions compared to expectations allowed for the first time an increase in budget revenues.

  "The consolidated budget's tax revenue rate climbed by 1.8 billion GEL from its first plan to its final plan, which was 17 billion 350 million GEL. Tax revenue cash flow exceeded 17 billion 385 million GEL, exceeding the enhanced expected indicators by 100.2 percent. It should be noted that the rate of value-added tax refunds exceeded 2 billion 265 million GEL at the same time. The consolidated budget's overall revenue exceeded 23 billion 648 million GEL, or 100.8 percent, of the projected amount”, - the Minister of Finance noted.

  Regarding the expenditure component, the Minister reported strong performance and a volume of 23 billion 49 million GEL, or 99.7% of the anticipated amount. Cash flow above 15 billion 615 million GEL (99.2% of the estimate) and capital expenses exceeded 6 billion 169 billion GEL (101.2% of the projection), respectively, for the portion of current expenses.

  Lasha Khutsishvili called attention to the trend of declining budget deficits.

  Lasha Khutsishvili discussed the reforms that are currently taking place within the Ministry's system, including: the management of state finances, management of state investments, management of debt, reform of state enterprises, analysis of the efficacy of tax expenditures, and reforms in the tax and customs areas.

  According to the Finance Minister, the Ministry started actively working on the examination of tax expenditures, or tax advantages that are legally defined, in 2020.

• H.E. Lasha Khutsishvili, Minister of Finance of Georgia Meets IMF Mission

  H.E. Lasha Khutsishvili, Minister of Finance of Georgia met Subir Lall, Deputy Director of Middle East and Central Asia Department of the International Monetary Fund (IMF) and James John, IMF Mission Chief today, along with other mission members.
  Discussion was focused on the cooperation of Georgia and IMF, as well as the implementation of reforms envisaged in the 3-year program supported by the IMF.
  Dignitaries reviewed the current economic stance of the country, once again highlighting that irrespective of the current challenges, Georgia achieved progress in terms of economic growth and improved fiscal parameters in the past two years. At the same time, significance of continued macroeconomic policies has been stressed.
  Meeting was attended by Giorgi Kakauridze and Ekaterine Guntsadze, Deputy Ministers of Finance; Selim Cakir, Resident Representative of the IMF in Georgia; Vakhtang Chalapeikrishvili, Department Head of Macroeconomic Analysis and Fiscal Policy Planning at the MOF and Shota Gunia, Department Head of Fiscal Risk Management at the MOF.

• Georgia Receives Around €55.6 Million from EBRD to Modernize Metropolitan Transport in Tbilisi

  Agreements were signed today by and between Georgia and European Bank for Reconstruction and Development (EBRD) envisaging the modernization of metropolitan transport in Tbilisi.
  Loan and Grant Agreements were signed by H.E. Lasha Khutsishvili, Minister of Finance of Georgia and Mark Bowman, EBRD Vice President for Policy and Partnerships during his working visit to Georgia held within the scope of a Caucasus Tour.
  Financial resources in the volume of around 55.6 million Euros will be used for the rehabilitation of underground metropolitan stations in Tbilisi and refurbishment of escalators.
  Project will be implemented by the Mayor’s Office in the Municipality of Tbilisi through Tbilisi Transport Company (TTC).
  Mark Bowman, EBRD Vice President for Policy and Partnerships is visiting Georgia together with Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus (EEC).
  This visit was preceded by a series of meetings held by H.E. Odile Renaud-Basso, EBRD President in Tbilisi in September 2022.
  The current visit aims to review the upcoming projects of EBRD to be implemented both in the private and public sectors of the country.

• Georgia and ADB signed the Agreement on Fiscal Resilience and Social Security Program

  Agreement has been concluded with Asian Development Bank (ADB) for the implementation of a fiscal resilience and social security program in Georgia. According to the administration of the Ministry of Finance, Georgia and ADB signed the Agreement on Fiscal Resilience and Social Security Program today.

  Document was signed by H.E. Lasha Khutsishvili, Minister of Finance of Georgia and Shane Rosenthal, ADB Regional Director in Georgia.

  Agreement envisages the allocation of financial resources in the volume of 100 million and 190 thousand Euros for the implementation of a Fiscal Resilience and Social Security Program ensuring the sustainable and inclusive economic growth.

  Signatories shared their vision at a meeting held prior to the signing of the agreement on the current situation in the country developing against the background of global challenges. Transit potential and boosted energy security of Georgia, along with its significance was once again highlighted.
• Government of Germany to Allocate €27 Million as Budget Support for Energy Sector Reform of Georgia

  The Agreement on Stabilizing the Economy by Supporting the Energy Sector Reform was signed today by and between Georgia and Kreditanstalt für Wiederaufbau (KfW).
  Signatories of the document are H.E. Lasha Khutsishvili, Minister of Finance of Georgia and Birgit Holderied-Kreß, Director of KfW Office in Tbilisi.
  H.E. Ernst Peter Fischer, Ambassador Extraordimary and Plenipotentiary of the Federal Republic of Germany to Georgia attended the event.
  The agreement envisages the implementation of Phase 5 of the Energy Sector Reform which provides support for the sector-specific initiatives planned by Government of Georgia. With this commitment, authorities of the country will continue strides towards using the full potential of renewable energy, energy efficiency and a market-driven power market.