Georgia - Public finance

Georgia has been notorious for mismanaging its budget. In 1999, the IMF put one of its programs in the country on hold because Georgia could not meet the conditional budgetary targets the IMF set forth. A more realistic budget in the second half of 2000 paved the way for a new IMF program beginning in January 2001. Georgia's progress towards those new budgetary goals has been uneven, but it has remained on track.

The US Central Intelligence Agency (CIA) estimates that in 2001 Georgia's central government took in revenues of approximately $499 million and had expenditures of $554 million. Overall, the government registered a deficit of approximately $55 million. External debt totaled $1.7 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.


Tax revenue 83.1% 415
Non-tax revenue 8.5% 43
Grants 8.3% 42
EXPENDITURES 100.0% 1,006
General public services 50.0% 502
Defense 2.4% 24
Public order and safety 5.0% 50
Education 2.3% 23
Health 2.5% 25
Social security 16.3% 164
Housing and community amenities 0.3% 3
Recreation, cultural, and religious affairs 1.5% 15
Economic affairs and services 4.0% 40
Other expenditures 5.5% 55
Interest payments 10.4% 105
Also read article about Georgia from Wikipedia

User Contributions:

Comment about this article, ask questions, or add new information about this topic: