Parliament reviews revised draft of Georgia’s 2026 state budget

The Parliament of Georgia on Wednesday reviewed the revised draft of the 2026 state budget.

Finance Minister Lasha Khutsishvili presented lawmakers with the country’s key economic indicators and an overview of the macroeconomic parameters underpinning the budget.

The Minister said Georgia’s real economic growth was projected at five percent for 2026, while the medium-term forecast stood at 5.3 percent. The gross domestic product deflator was expected to reach four percent next year and stabilise at three percent in the following years.

The average inflation rate for 2025 is forecast at 3.6 percent, remaining within the target range of three percent over the medium term. The nominal GDP is projected at ₾110.5 billion ($40.86bln), with consolidated budget tax revenues amounting to ₾26.8 billion ($9.91bln) and a budget deficit set at 2.5 percent of GDP.

“The total expenditure of the 2026 consolidated budget amounts to ₾35.5 billion ($13.13bln), within which all state obligations are fully funded”, Khutsishvili said.

The total revenues of the 2026 state budget are estimated at ₾30.29 billion ($11.20bln), while total allocations amount to ₾30.48 billion ($11.27).

Khutsishvili also outlined the planned allocations for individual ministries:

• Ministry of Health – ₾9.62 billion ($3.56bln)

• Ministry of Infrastructure – ₾3.10 billion ($1.15bln)

• Ministry of Education – ₾2.62 billion ($0.97bln)

• Ministry of Defence – ₾1.8 billion ($0.67bln)

• Ministry of Internal Affairs – ₾1.47 billion ($0.54bln)

• Ministry of Economy – ₾1.14 billion ($0.42bln)

• Ministry of Environmental Protection and Agriculture – ₾855.8 million ($316.46)

• Ministry of Justice – ₾442.2 million ($163.52mln)

• Ministry of Culture – ₾319.3 million ($118.07mln)

• Ministry of Sports – over ₾295 million ($109.09mln)

• Ministry of Foreign Affairs – ₾220 million ($81.35mln)

• Ministry of Finance – ₾130 million ($48.07mln)

• Ministry of Regional Development – ₾110.4 million ($40.82mln)

The Minister noted that discussions on feedback and proposals regarding the budget were ongoing with relevant agencies and the final version of the 2026 state budget would be submitted to Parliament in the near future.