Government submits revised 2027 draft budget to Parliament for second reading
The Georgian Government has submitted a revised draft of the 2027 state budget to Parliament for its second reading, the Ministry of Finance announced on Friday.
The updated draft projects real GDP growth at 5.0 per cent for 2027, before settling into a 5.2 to 5.3 per cent range over the medium term. Nominal GDP is projected to expand by 8.9 per cent to GEL 126.4 billion in 2027, with annual growth expected to average 8.5 per cent thereafter, taking the economy past GEL 161.0 billion by 2030. Per capita GDP is projected to exceed $12,000 by the end of 2027 and reach $15,000 by 2030.
Inflation will cool over the course of next year, landing back at its 3.0 per cent target by year-end. The current account deficit is targeted at 2.6 per cent of GDP in 2027, narrowing to 3.6 per cent over the medium term. The fiscal deficit is targeted at 2.5 per cent of GDP in 2027, narrowing gradually to 2.2 per cent over the medium term, while public debt is projected to remain low at 31.1 per cent of GDP.
Total consolidated budget receipts are projected at GEL 38.36 billion for 2027—an increase of GEL 2.37 billion compared to 2026 forecast levels. Revenues account for over 87 per cent of total receipts, standing at GEL 33.56 billion. Tax revenues are budgeted at GEL 29.87 billion, up by GEL 2.02 billion year-on-year and GEL 355 million higher than the initial budget draft. The government also plans to process over GEL 3.20 billion in tax refunds during 2027.
Total expenditure for 2027 is budgeted at GEL 38.24 billion, a year-on-year increase of GEL 2.26 billion. Of these outlays, GEL 26.21 billion is earmarked for primary operational spending (excluding debt interest), up GEL 2.00 billion on 2026 figures.
Operational spending in the revised draft has been scaled up across key social and administrative sectors:
Healthcare and Social Welfare: Funding has been boosted by over GEL 1.00 billion.
Pension outlays increase by GEL 685 million. In accordance with legal indexation rules, pensions for citizens aged 70 and over will rise by GEL 60 to GEL 555 per month, while pensions for recipients under 70 will increase by GEL 45 (up from the GEL 20 raise proposed in the first draft) to GEL 415. A 20 per cent supplement remains in place for retirees residing in high-mountain settlements. The pension budget was allocated an extra GEL 130 million to finance above-indexation increases for retirees under 70.
Disability benefit allocations have been raised by GEL 81 million (an extra GEL 21 million over the previous draft).
Targeted healthcare programs will receive GEL 243 million (up by GEL 118 million), incorporating pay rises for emergency medical personnel and rural healthcare workers.
Social rehabilitation and child welfare initiatives receive an additional GEL 34 million, while state contributions to the defined-contribution pension scheme increase by GEL 60 million.
Education: Spending rises by GEL 450 million, covering pay increases for public school teachers, administrative staff, and kindergarten personnel, alongside state-funded tuition at public universities under higher education reforms.
Public Sector Pay: Base civil service salaries will rise by 8.4 per cent, aligned with private-sector wage growth over the past four quarters, increasing the total state payroll by GEL 468 million.
Sports Federations: Funding increases by GEL 70 million.
Capital spending from the consolidated budget will exceed GEL 8.40 billion in 2027, nearly GEL 1.20 billion higher than the 2026 target. Major capital allocations include:
Municipal Infrastructure: Over GEL 2.80 billion.
Road Network: GEL 1.38 billion, including GEL 773 million allocated specifically to highway construction.
Educational Infrastructure: GEL 830 million.
Water Supply and Sanitation: GEL 350 million from the 2027 budget, alongside GEL 280 million in supplementary 2026 funds allocated to the United Water Supply Company for execution through 2027.
Energy Grid: GEL 230 million, including energy storage infrastructure. An additional GEL 55 million from current-year funds will be deployed for regional gasification projects in 2027.
Sports Facilities: GEL 310 million for construction and renovation.
Tourism Infrastructure: GEL 100 million, supplemented by GEL 80 million in current-year funding for mountain resort upgrades.
Displaced Persons Housing: GEL 408 million (an increase of GEL 140 million over the first draft), reflecting a new government scheme to provide monetary compensation for IDP residential properties. The measure will be bolstered by over GEL 100 million in supplementary funding reallocated from the current fiscal year.
Healthcare Infrastructure: GEL 142.5 million.
Irrigation Infrastructure: GEL 85 million from 2027 funds, backed by GEL 70 million in supplementary current-year capital.
Waste Management: Over GEL 110 million.
Security & Defence Capital Outlays: GEL 882 million spanning police, state security, and military infrastructure.
Georgian Railway: GEL 250 million to expand network capacity.
Tbilisi Metro: GEL 125 million for system modernisation.
Broadband Connectivity: GEL 107 million to expand fibre-optic coverage in rural settlements.
Other Capital Projects: GEL 303 million combined.
Parliament will examine the revised 2027 draft budget in committee over the coming weeks, incorporating further legislative amendments before putting the final text to a vote in December.