Regional Policy and Self Governance Committee Chair of the Parliament of Georgia, Grigol Liluashvili, in his speech at the plenary session of the Parliament of Georgia, stated:

“One year ago, in this chamber, our opponents were making sceptical statements that the Government of Georgia would be unable to bear the heavy financial burden of GEL 1,260 million from the budget to fund infrastructural projects. However, the nine-month budget fulfilment results are unprecedented – 98.6%. One quarter of the year remains and based on our calculations, this year’s budget fulfilment will be in surplus and reach GEL 1,300 million.”

FactCheck

took interest in the accuracy of the statement.

Grigol Liluashvili was referring to the budget of the Ministry of Regional Development and Infrastructure in his statement about funding infrastructural projects. According to the information

of the Ministry of Finance, the budget of the Ministry of Regional Development and Infrastructure was GEL 1,258 million in 2017 whilst the nine-month fulfilment plan was determined to be GEL 948 million. This was fulfilled by 97.7% (GEL 926.2 million).

Table 1:

 Ministry of Regional Development and Infrastructure Budget

Year Plan Fact Fulfilment
2012 767.9 663.0 86%
2013 1003.6 823.6 82%
2014 935.7 904.0 96.6%
2015 880.1 898.4 102%
2016 967.5 965.8 99.8%
2017 1,258.0 926.2 (nine months) 97.7%
2018 1,832.5 - -
Source: Ministry of Finance  

The Ministry of Regional Development and Infrastructure was established in 2009. In the period from 2010 to today, the highest fulfilment figure was registered in 2011 with 98.9%. After 2011, the highest figure is the one for 2017 (nine months) at 97.7%. In regard to the previous years, the 2016 plan was fulfilled by 88.5%, the 2015 plan was fulfilled by 86.8% and the 2014 plan was fulfilled by 73.4%. Therefore, taking into account the history of the previous years, it can be stated that the budget fulfilment report for the first nine months of 2017 is rather high.

It is hard to estimate whether or not the 2017 infrastructural budget fulfilment will reach GEL 1,300 million. However, if we take a look at the established practice in the previous years, we will see that more is always spent in the fourth quarter as compared to the other quarters. Additionally, according to the operative information

of the State Treasury, the total expenses made by the Ministry of Regional Development and Infrastructure constitute GEL 1,112 million as of 17 November 2017. However, the planned expenses of the Ministry of Regional Development and Infrastructure have been increased to GEL 1,284 million (instead of GEL 1,258 million). In order to fulfil the budget plan, GEL 172 million has to be spent before the end of the year.

Conclusion

The budget of the Ministry of Regional Development and Infrastructure for 2017 was determined to be GEL 1,258 million. The budget fulfilment rate for the first three quarters of 2017 is 97.7%. This not an unprecedented figure because the three-quarter fulfilment rate in 2011 was 98.9%.

We are unable to say what the 2017 budget fulfilment rate will be. However, if we take a look at the practice of the previous years, we will see that quite a big portion of the annual budget is usually spent in the fourth quarter. Therefore, taking into account the established practice of the previous years, it is possible that 2017 budget fulfilment rate will reach GEL 1,300 million.

FactCheck concludes that Grigol Liluashvili’s statement is MOSTLY TRUE.

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