The execution of state budget receipts on the aggregate level
- Overall state budget receipts on the aggregate level comprises 66.1% of six-month plan (30.3% of the planned value approved by the State Budget Law) and exceeds to the last year parameter by 14.7% for 4 months of 2015. Total amount of the state budget expenditures comprises 62.9% of six-month plan (30.0% of the planned value approved by the State Budget Law) and growth rate equals to 14.8% compared to last year’s figure.
- With respect to the components of the state budget receipts (state budget receipts include four components: revenues, disposal of financial and nonfinancial asset, increase in liabilities), with respect to the six-month plan receipts from disposal of nonfinancial assets (privatization) are characterized by high execution trend, which in nominal terms comprises 79.0 million GEL (303.8% of six-month plan) and exceeds to the last year’s figure by 106.4%. As for the state budget revenues, they comprise 69.2% of the six-month plan and exceeds to the similar parameter of the last year by 334.5 million GEL (15.1%) mainly influenced due to growth in tax revenues.
- As for the main trends on the level of the components of the state budget expenditures (state budget expenditures include 4 components: expenses, acquisition of nonfinancial and financial assets, decrease in liabilities) the lower execution trend revealed for expenses with regard to non-financial assets growth (the so-called capital expenditures) with regard to both the quarterly breakdown of plan and six-month plan. However, compared to the execution trend of previous year improvement revealed and the main trend on the level of the components of the state budget expenditures comprises 48.4% of six-month plan according to the quarterly breakdown of the plan and exceeds to the previous year’s figure by 52.7 million GEL (56.3%). As for the execution of state budget expenses it comprises 63.3% of quarterly breakdown of the plan for 4 months and exceeds the last year’s similar parameter by 12.3%, but the growth index is 268.6 million GEL in nominal terms and, herewith, growth rate of the so-called capital expenditures as already mentioned amounts to 52.7 million GEL. As for the dynamics of the state budget expenses on the level of components, the above mentioned increase in the state budget expenses - 268.6 million GEL – compared to the previous year’s same period is mainly related to the growth of social benefits (95.7 million GEL), grants (44.3 million GEL) and other expenses (43.0 million GEL). However, when analyzing trends on the level of individual components of expenses it is worth noting that the relevant article of classification of expenses in the Law of 2015 State Budget and, accordingly in the report on the execution of state budget in first quarter reflects the disposal of resources from state budget by LEPLs, which were cumulatively reflected by the article of subsidies in recent years. Thus, despite the fact that the current performance gives a fairer picture of the disposal of the state budget funds, it is necessary to foresee the above-mentioned differences in classification when analyzing trends of components of state budget expenses compared to last year. With regard to both quarterly breakdown and six-month plan slight excess is revealed in the article of financial assets growth for payments, for which execution comprises 65% of quarterly breakdown of the plan (58.4% of six-month plan) and exceeds the last year’s similar parameter by 52.1 million GEL (120.0%), mainly influenced by financial assets growth trend with article of stocks and capital.
State Budget Revenues
- Total amount of the state budget revenues comprises 2,556 million GEL for 4 months of 2015 and amounts 69.2% to the six-month plan (31.6% of annual plan). On the level of components (state budget revenues includes three component: tax revenues, grants and other revenues) the bias from the trend is revealed for other revenues. In particular, the state budget received 99.4% of the six-month plan as other revenues for four months period.
- Total tax revenues comprises 68.3% of the six-month plan (31.5% of the previous year’s plan) and exceeds to the previous year’s similar parameter by 12.8% (271.2 million GEL). However, different trends revealed for separate types of taxes. In particular, revenues gained as profit tax and value added tax show relatively high levels of mobilization (84.2% and 68.8% of the six-month plan are gained in four months), and relatively low levels of mobilization revealed in the direction of excise and import taxes (54.3% and 44.9% of the six-month plan). With regard to the previous year’s similar parameter growth rate comprises 34.7% and 10.3% for revenues gained as profit and VAT, and 11.4% and 2.4% for excise and revenue taxes. Herewith, revenues gained as import taxes is less than previous year’s similar parameter by 21.9%.
- With regard to revenues gained as state budget grants this measure comprises 31.7% to the planned value and conforms to 68.2 million GEL. Here, the fact should be taken into account that previous year’s measure comprised 4.4 million GEL. In recent year budget supporting grants composes main part (44.0%) of mobilized grants.
- As for the execution of other revenues it comprises 99.4% of the six-month plan, mainly influenced by the execution trend of the incomes from property and mixed and non-classified revenues (mainly caused by high execution of revenues in interest and rant article). In particular, with these articles revenues comprises 24.2 million GEL and 32.4 million GEL for January-April of 2015 (90.5% and 211.8% of the six-month plan). The trend is partially related with the changes undertaken in the state budget classification. In particular, the amount of previous year’s return of unused budget funds and uncertain funds charged to treasury single account and are classified as mixed and non-classified revenues. After further clarification these funds will be used for the intended purpose (total amount 9.8 million GEL), while it was classified as disposal of financial assets in previous years.
State Budget Expenses
- With regard to the execution of state budget expenses, percentage of utilization of the assigns picked out on the level of spending agencies fluctuates by 20-35% for most spending agencies. Main trend of utilization of assigns with regard to annual plan and programs is represented in enclosure (see enclosure 2-4).
- Analysis of the components of general purpose of state expenses reveals that allocated resources of reserve fund of the government amounts 34.6 million GEL for 4 months of 2015, while actual transfers amounted 31.3 million GEL that comprises 62.6% of the planned volume. It is noteworthy that allocated resources of the Government’s reserve fund by purposes are represented in the report. Transfer for regional project fund/rural support program amounts 51.9 million GEL that comprises 17.3% of the planned volume for 4 months of 2015.
Dynamics of Domestic and External Liabilities
- The factual execution of cash receipts from the component of increase in domestic liabilities of the state budget amounts 224.4 million GEL for 4 months of 2015 (annual plan – 600 million GEL). According to existing specifics of accounting during the reporting period treasury liabilities and obligations were emitted at face value of 490.0 million GEL and were covered at face value of 264.2 million GEL.
- According to the information received from the State Treasury, total amount of grants received from external sources are characterized by upward trend compared to previous year, mainly influenced by revenues gained as grants. In particular, grants amount 68.2 million GEL for 4 months of 2015 that comprises 31.7% of the planned value that exceed to the previous year’s same measure by 63.8 million GEL. As for credits, receipts of stated budget from incurrence of external liabilities amounts 122.7 million GEL that comprises 12.1% of annual planned value. With this, the big portion (98 million GEL) is related with obtaining investment credits. (Read complete document in Georgian)