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.
GLOBALink | China, Northern Ireland to boost cooperation on new energy
Officials and experts from China and Northern Ireland on Tuesday expressed their desire to boost cooperation on new energy innovation, amid global challenges of climate change and biodiversity loss.
Produced by Xinhua Global Service
Irakli Garibashvili, Prime Minister of Georgia Meets Foreign Minister of the Federal Republic of Germany
Productive cooperation between Georgia and Federal Republic of Germany in various directions, progress achieved by Georgia on the path of European integration and implementation of recommendations issued by the European Commission for obtaining the status of an EU Candidate Country were among the topics discussed by and between Irakli Garibashvili, Prime Minister of Georgia and Annalena Baerbock, Minister of Foreign Affairs of the Federal Republic of Germany today.The Head of Government of Georgia expressed his gratitude to the visiting Federal Minister for the political and practical support demonstrated by the Federal Republic of Germany to Georgia in the process of its European integration and highlighted the significance of support expressed by the western partners towards Georgia and Associated Trio in the journey towards Europe.High level of the political dialogue pursued between the two countries was stressed at the meeting. The Prime Minister of Georgia expressed gratitude towards the Federal Minister of Foreign Affairs of Germany for the firm support of the sovereignty, territorial integrity and European integration of Georgia.The Head of Government of Georgia noted that Germany played a significant role at multiple occasions in the institutional and socio-economic transformation of Georgia. He also highlighted that the country is a reliable partner and ally of the EU in the region and beyond, striving to continue playing a constructive role in supporting peace and stability in the region.Irakli Garibashvili and Annalena Baerbock reviewed the security environment and challenges faced by the region and entire world. Significant role of Georgia in solidifying the Black Sea Security was highlighted also.Press Service of the Government Administration
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.
Minister of Finance of Georgia met ADB Country DirectorH.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.