BAKU, Azerbaijan, Dec.3
By Tamilla Mammadova – Trend:
In the event of another shock to the lari exchange rate, there is a high probability that the public debt ratio will suddenly rise to 72 percent of GDP if the lari depreciates by 30 percent, Trend reports via the State Audit Office of Georgia.
As reported, the government of Georgia increases debt by 3.6 billion lari ($1.08 billion) in 2021.
As of the draft budget 2021, it is planned to borrow 5.27 billion lari ($1.5 billion) in foreign debt next year. Consequently, in the event of another shock to the lari exchange rate, there is a high probability that the public debt ratio will suddenly rise to 72 percent of GDP.
Audit Service also published a report on the 8-month performance of the 2020 budget. The document reads, that the remains of the state debt increased by 1.84 billion lari ($556.1 million).
During 2020, the national currency depreciated by 13.6 percent against the USD, while by 19 percent against the euro. However, most of Georgia's foreign loans are nominated in these two currencies.
The budget will be distributed among ministries as follows:
Ministry of IDPs from the Labor, Health and Social Affairs – 5.56 billion lari ($1.6 billion),
Ministry of Regional Development and Infrastructure – 2.42 billion lari ($729.9 million),
Ministry of Education, Science, culture, and sport – 1.8 billion lari ($524.9 million),
Ministry of Defense – 900 million lari ($271.4 million),
Ministry of Internal Affairs – 790 million lari ($238.2 million),
Ministry of Economy and Sustainable Development - 469.8 million lari ($141.7 million),
Ministry of Environmental Protection and Agriculture - 463.6 million lari ($139.8 million),
Ministry of Justice – 246.5 million lari ($74.3 million),
Ministry of Foreign Affairs – 174.2 million lari ($52.5 million),
Ministry of Finance – 88.9 million lari ($26.8 million).
Meanwhile, the budget of the State Ministry for Reconciliation and Civic Equality of Georgia amounted to 2.55 million lari ($769.1 million).
---
Follow the author on Twitter: @Mila6197935
