MPs supported the draft Resolution on Set up of the State Constitutional Commission and Endorsement of the Provisions of the State Constitutional Commission. The Chairman, Irakli Kobakhidze spoke about the principles, objectives, composition, structure and activity rule of the SCC. The primary task is to improve the Constitution. “We shall show that we have the political will to ensure full compliance of the Constitution with the fundamental principles of the Constitutional Law and establishment of the Constitutional system respective to the long-term democratic development interests. I believe that we have the resource to achieve consensus between the subjects”.
The Commission will be composed of the Chairman of Parliament, chairing the Commission, the each representative from the parties independently participating in the Parliamentary elections and the leading position parties of the blocs failing to overcome the threshold but obtained at least 3% of votes; 2 representatives of the President, 2 representatives of the Government, Chair of the Constitutional Court, Chair of the Supreme Court, Heads of the representative and executive bodies of Adjara and Abhazia AR, Public Defender, Auditor General, Secretary of the National Security Council, exports and NGOs. The draft envisages maximal involvement of all the subjects. The SCC will also cooperate with the Venice Commission.
MPs considered sundry drafts introduced by the Deputy-Finance Minister, Lasha Khutsishvili, including the Convention between Georgia and Liechtenstein on Prevention of Double Taxation of Income and Capital and Elimination of Non-Payment. The Deputy-Finance Minister, Giorgi Kakauridze introduced the draft resolution between EBRD and Georgia on Loan Agreement on Tbilisi School Rehabilitation and Energy Efficiency covering 25 public schools in Tbilisi.
The Loan Agreement between Georgia and EBRD on Solid Waste Management envisages purchase of waste collection vehicles and containers with 10 ml EURO credit and 2 ml EURO grant. MPs supported the documents.
MPs considered the draft State Budget 2017 and the draft on Tax Code with the I reading. The changes envisage definition of the calendar month instead of the calendar year for calculation of taxation of income/profit of the person in case of e-bet system. VAT taxation time is defined as no later than advance payment date of the compensation amount if payment takes place prior to provision of goods/service. The draft redefines taxation transaction time in case of provision of real property. The excise fee on tobacco and oil, as well as some vehicles is to be increased. The draft envisages property tax on the vehicle if annual income of the owner exceeds 40 thousand GEL. The vehicle taxation will take place in the transitional period if the transportation of the vehicle started no later than December 1, 2016.
The draft on Budget Code envisages increase of the plan upon planning the tax incomes of the budget by municipalities. The Article is to be added to the Code defining the rule of disposal of the projects implemented in municipalities on autonomous territories. The change envisages Akhalgori, Kurta, Erdvi, Tigvi and Azhara municipalities equalization transfer calculation rule to be defined under the annual law on State Budget.
The draft on Gambling Business Fees envisages increase of fee rate for gambling in the events of: on each casino table, game machine, system-electronic game, club table, gambling and/or profitable game license object and gambling/profitable game cash desk.
The organic law on Municipal Code envisages the municipalities in case of planning the healthcare-related events within annual budget, to communicate the program directions with the Ministry of Labor, Health and Social Protection. The municipalities shall be entitled to establish non-commercial legal entity or become the member thereof in view of coordination of activity.
MPs considered with the I reading the draft by Eka Beselia and Giorgi Kakhaini on organic law on National Bank of Georgia. The draft envisages appointment and dismissal of the Vice-Presidents with nomination of the President of NB by the Council of the NB instead of the President of Georgia and the salary of the member of the NB Council and the Agency Council shall be defined by the Parliament.
The Education, Science and Culture Committee initiate the changes to the law on General Law. The Chair of the Committee, Mariam Jashi stated that the draft entitles the Ministry of Education to define the types of schools taking the rule of financing and management, structural units, academic plan, state control and human resource requirements into account. The draft envisages distance education form in schools. The Government is entitled to endorse the rule and terms of financing of school within the respective target program serving the basis for the Ministry to implement financing. The Ministry is empowered to make the decision with consent of the Government in case envisaged under the rule of classification of the textbooks on classification of the books.
M. Jashi introduced with the I reading the draft on Grants, envisaging the LEPL defined by the Government to be the grant issuer (donor), aiming to issue grants for improvement of education quality as well as issue grants to facilitate integration of national minorities and highland residents. The grant recipient can be the foreign citizen, in view of grant competition called by the LEPL – Sh. Rustaveli National Scientific Fund. The changes are to be adopted to the law on Science, Technologies and Development thereof envisaging the State Control Agency, in case of refusal of appointment of the director of SRI, to assign the acting director or the head of the structural unit of the organization.
The draft on Higher Education concerns categories of the academic personnel of universities. The changes envisage composition of the personnel with professor, associate professor, assistant professor and the assistant. The change envisages election of the professor or any research officer with life tenure or certain term. Election of post-doctoral personnel shall be implemented under the rule established by the Academic Council. Any decision on movable property of the LEPL higher educational institution if it goes beyond the scopes of activity of the educational and scientific-research activity, can be made under the decision of the representative council of the university with consent of the Ministry of Education. The transitional regulations envisage the students and in the theological programs and pedagogue education.
The Chair of the Health Care Committee, Akaki Zoidze introduced with the I reading the drafts on: Social Aid; State Pension; State Compensation and State Academic Scholarship envisaging living allowance excessively issued before July 1, 2016 to be considered legalized and not subject to refund. The sum deduced for living allowance, as well as any other payments of the person due to excessively issued living allowances shall be subject to refund. MPs voted for the drafts. The next plenary of the autumn session will be held tomorrow, at 12h00.
Related items
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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.
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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. -
H.E. Lasha Khutsishvili, Minister of Finance of Georgia met Shane Rosenthal, ADB Country Director in Georgia with Bruce Dunn, ADB Director of the Sustainable Development and Climate Change Department and other officials of the ADB.Meeting was attended by Ekaterine Guntsadze, Deputy Minister of Finance of Georgia.Dignitaries discussed the bilateral and regional cooperation between Georgia and Asian Development Bank (ADB).ADB intends to update its Safeguard Policy Statement issued in 2009. It will be brought in compliance with the ADB Strategy for 2030 and its operational priority plans.Meeting held today was aimed at sharing information on the updated policy approaches and directions between the stakeholders to make sure that every country of the ADB gets more effectively engaged in the process of discussion.Safeguard Policy Statement includes such themes as: assessment and management of environmental and social risks and impacts; labor and working conditions; pollution prevention and resource efficiency; health, safety and security; biodiversity and sustainable natural resource management; cultural heritage and others.As noted at the meeting, Georgia stands ready to actively cooperate and attune its position in all these directions.
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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. -
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.
