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• THE COMMITTEE APPROVED THE DRAFT LAW ON MOTOR TRANSPORT

  The Sector Economy and Economic Policy Committee discussed the Draft Law on Motor Transport envisaging that the vehicle with an age exceeding 40 years shall, according to the respective criteria, be attributed to the historical and cultural values and can be used as a collection item and considered as a classic car; the Draft was submitted by the Vice-Speaker, Archil Talakvadze.

  According to him, the Draft establishes the European regulations on classic vehicles.

  “The Government undertakes the transport reform, one of the components of which are regulations, facilitating the update of the car par to, on the one hand, maintain its accessibility and also to ensure its maximal eco-friendly nature. Through the reforms, the authority encourages the import of e-vehicles and hybrid cars. Against this background, we offer the European regulations concerning the classic vehicles, which shall avoid the prejudice to this sphere – the classic and historical cars”, - he noted.

  The respective amendment is as well to be introduced to the Tax Code.

  The Drafts, other than the determination of the classic vehicles, allow the government to regulate the sphere to simplify the exploitation of the cars by the holders and reduce the tariff to the European target. The Committee approved the Drafts.

• 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.

• Georgia: EBRD to help improve solid waste management in Kobuleti and Batumi

  The European Bank for Reconstruction and Development (EBRD) is committing new funds to address solid waste treatment issues in Batumi and the wider Adjara region in Georgia. A sovereign loan of up to €19 million for Adjara Waste Management Company will help tackle some of the most pressing environmental challenges faced by the tourist region’s inhabitants and visitors. 

  The first committed tranche of up to €3 million will be used to purchase new solid waste management equipment. This will enable the borrower to start new landfill operations and, consequently, stop waste being disposed of at the current non-European Union (EU) compliant dumpsites. The second uncommitted tranche of up to €16 million will be used to build a new waste treatment plant, allowing the company to recover recyclables and divert waste sent to the new sanitary landfill. 

  The investment will address the priority needs of Batumi and the wider Adjara region. This includes stopping the disposal of waste at existing dumpsites in Kobuleti and Batumi, with the latter being the largest and most dangerous polluter in Georgia. “These dumpsites are active sources of land, water and air pollution, impacting the ecosystem of the region in particular, and the Black Sea in general,” says EBRD. 

  Find out more

  Press release

• 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 Director

  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.