Georgia enhances economic outlook and amends 2025 budget amid robust growth forecast
The Georgian government has revised the 2025 state budget. According to the explanatory note, both real economic growth and other macroeconomic indicators have been updated following a nine-month analysis.
Furthermore, adjustments have been made to both revenue and expenditure forecasts: on one hand, there is a recognised need to allocate additional resources to various programmes; on the other, some funds have been generated within existing programmes this year for different reasons.
“Taking all of the above into account, a draft of amendments to the 2025 budget has been prepared, which envisages funding for additional needs and the reallocation of freed resources to finance priority programmes and projects. These initiatives, which lacked sufficient funding in the 2026 budget, are now being supported. Accordingly, the proposed amendments have been developed in conjunction with the 2026 budget,” the document states.
Most notably, by the end of this year, Georgia has raised its economic growth forecast from 6.0% to 7.2%. The average inflation rate has increased from 3.2% to 3.9%. Government debt has decreased from 35.9% to 34.1%.
Additionally, the projected consolidated budget revenues have increased by 222.6 million GEL, reaching a total of 32,133.5 million GEL. Specifically, tax revenues are expected to rise by 200.0 million GEL to 25,505.0 million GEL, with the state budget share increasing by 55.0 million GEL to 21,940.0 million GEL. The share of the republican and municipal budgets of autonomous republics is projected to grow by 145.0 million GEL, reaching 3,565.0 million GEL. Grants and other revenues are forecast to total 2,761.2 million GEL, an increase of 401.2 million GEL. The rate of decrease in non-financial assets through privatisation has been raised by 20.0 million GEL, amounting to 520.0 million GEL. Repayments of loans have decreased by 220.0 million GEL, while liabilities are expected to increase by 3,127.3 million GEL.