GEORGIA | PUBLIC EXPENDITURE REVIEW
Table 1.2: Medium-Term Fiscal Framework
2006
Revenues and Grants Tax revenues grants
Other revenues
Total Expenditure
Current Expenditure
Compensation o f employees
Purchases of goods and services Interests
Subsidies Grants
Social benefits Other expense
Capital Expenditure Capital
Net Lending
Overall fiscal deficit
2007
2008
2009
4,431
5,444
5,854
5,372
199
112
617
397
3,800 431
4,810 522
4,753 484
4,479 497
2011
2012
2013
2014p
2015p
5,515
5,902
6,412
6,293
6,544
6,955
7,372
7,786
444
192
230
176
169
178
162
172
Real 2008 Lari, million
4,576
495
5,267 443
5,658 524
5,661 456
5,964 410
6,369 408
2016p
2010
6,778 432
2017p
7,156 458
4,929
6,320
7,081
7,067
6,790
6,635
7,029
6,866
7,429
7,726
8,092
8,488
680
746
1,008
1,070
1,053
976
1,020
1,186
1,230
1,274
1,323
1,383
3,435
4,661
929
1,734
465
429
133 -
112 19
5,396 1,614 121 512 12
5,525 1,128 175 429 15
5,155
4,802
1,070
1,040
357
366
194 12
247 11
5,155 1,101 215 436 14
5,500 859 202 466 13
5,980 886 254 445 13
6,210 892 255 459 19
6,445 972 216 459 18
6,751 1,010 286 429 36
846
932
1,379
1,537
1,526
1,421
1,575
1,951
2,307
2,446
2,565
2,691
1,494
1,659
1,685
1,542
1,635
1,833
1,874
1,367
1,449
1,516
1,647
1,737
382
1,294 199
-498
690
1,603 56
-876
750
1,524 161
-1,227
963
1,468 73
-1,694
941
1,448 187
-1,275
741
1,605 228
-733
794
1,625 249
-617
823
1,168 199
-573
845
1,328 121
-885
866
1,478 39
-771
891
1,566 81
-720
916
1,689
Georgia’s public sector debt is much lower than other ECA countries and is dominated by bilateral and multilateral concessional debt. Public debt at 34.5 percent of GDP in 2013 is dominated by external debt. The government’s debt level declined during 2010-13 due to fiscal consolidation policies (Figure 1.5). Most of the public external debt stock has been accumulated during 2008-10 with a substantial portion of Figure 1.5: Composition of Total Public Debt it maturing between 2012 and 2017. This implies In percent of GDP that during this period the government’s financing 40 requirements will be much higher with the need to refinance or repay. Due to the low fiscal deficit in 2013, the overall financing needs were lower and 3.4 3.5 30 3.2 3.5 the government was able to repay the IMF loan of 4.0 2.7 3.9 3.3 4.0 4.2 approximately US$140 million as well as a part of 3.9 4.2 4.1 4.3 4.7 its Eurobonds of approximately US$65 million (total 20 5.3 of 1.3 percent of GDP). At the end of 2013, the gov19.3 18.8 17.2 15.3 16.1 14.8 13.3 ernment’s external debt reduced by US$155 million, 11.1 9.9 around 1 percent of GDP, and stood at 27 percent of 10 GDP – a record low. However, domestic borrowing increased by 9.4 percent mostly via issuance of trea7.0 8.3 7.0 6.9 6.9 7.9 6.4 6.1 7.0 sury bills. The government has no state guaranteed 0 2006 2007 2008 2009 2010 2011 2012 2013 2014p loans outstanding, although debt issued by two of Domes c Debt External, bilateral the state enterprises in recent years (around 4 perExternal, mul lateral Eurobonds cent of GDP) could count as an implicit contingent Source: MOF and Staff estimates liability. 6. Productivity is measured as the total VAT (PIT, CIT) revenues divided by the highest VAT (PIT,CIT) nominal rate, IMF Country Report No. 11/93, April 2011
48
-703
Source: Georgian authorities; Bank staff estimates and projections. Note: p=projected
8