Base wages in public sector to increase by 8.4 per cent according to 2027 draft budget

The Government of Georgia submitted the draft budget for 2027 to the Georgian Parliament.

According to the Finance Ministry, based on the draft budget, the macroeconomic parameters for 2027–2030 are based on relatively conservative forecasts, which are fully consistent with outlooks of international financial institutions.

The forecast for real economic growth for 2027 is 5.0 per cent, while for the subsequent years it is in the range of 5.2–5.3 per cent; nominal GDP increases by 8.9 per cent and amounts to 126.4 billion GEL.

GDP Per capita is projected to exceed USD 12.0 thousand by the end of 2027 and USD 15.0 thousand by 2030; the inflation rate will show a downward trend next year, returning to its target level of 3.0 per cent by the end of the year. Inflation forecasts for subsequent years also remain within the target range.

The current account deficit stands at 4.5 per cent by 2027, while decreasing to 4.3 per cent in subsequent years;

Total receipts of the consolidated budget amount to 37 billion 531 million GEL, exceeding the 2026 forecast figure by 1 billion 526 million GEL.

The volume of tax revenues for 2027 is set at 29 billion 520 million GEL, which exceeds the projected volume for the current year by 2 billion 120 million GEL;

The expenditure side of the 2027 budget is planned at 37 billion 562 million GEL; The expenditures are increased in the following directions:

Healthcare and social projects: The pension for persons aged 70 and older is increasing by 60 GEL, bringing the total to 555 GEL (exceeding 665 GEL in mountainous settlements), while for beneficiaries under the age of 70, it is increasing by 20 GEL to reach 390 GEL (468 GEL in mountainous settlements); The social rehabilitation and child care program has been increased by more than 26 million GEL;

Education: wages will increase for teachers and administrative staff, and increased funds are allocated for tuition at state universities,

In accordance with Georgian legislation and reflecting the wage growth in the private sector over the last four quarters, the base official salary in the public sector is increasing by 8.4%, resulting in a 395-million-lari increase in the total remuneration fund.

Environment Protection and Agriculture; Improvement of Municipal Infrastructure; Energy infrastructure; Sports Infrastructure; Tourist Infrastructure; Management of Solid Waste; Modernization of Railway/Tbilisi Metro; Construction of Anaklia Port; Internet Supply in villages and other key areas.

The draft budget will be reviewed in the parliament; the remarks will be taken into account, and the final version will be approved in December, the Finance Ministry said.