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Resume: Funding of the Parliament of Georgia and associated organizations was GEL 36.4 million in 2012, which constituted 0.47% of total budget allocations. In the 2019 state budget, it is planned to increase allocations for the Parliament of Georgia by GEL 28.3 million and set at GEL 64.7 million, which would constitute 0.5% of total budget allocations.

Of note is that growth in nominal and relative figures of funding for the Parliament of Georgia in 2013 was largely caused by moving the Parliament of Georgia to Kutaisi. After this year, funding will decrease in relative figures.

Labour remuneration of the Parliament of Georgia and associated organizations was GEL 24.8 million in 2012, which constituted 2.36% of entire labour remuneration component of Georgia’s state budget. In accordance with the 2019 state budget, labour remuneration is planned to be GEL 31.2 million, which constitutes 2.12% of total labour remuneration allocations. In regard to labour remuneration of the MPs, since January 2018 it increased by GEL 833.

Roman Gotsiridze’s figures are mostly accurate, although not sufficient to compare funding in time. Assessment of situation based on nominal figures named in the MP’s statement would not be fair. In turn, share of allocations for the Parliament of Georgia and associated organizations in total allocations was slashed to 0.5% for the first time since 2013 (before 2012 it was 0.5% on average) and has not increased thus far.

Analysis

During the parliamentary discussion in regard to the 2019 draft state budget, head of the United National Movement parliamentary faction, Roman Gotsiridze, spoke about the volume of allocations[1] for the Parliament of Georgia and associated organizations. As stated by Mr Gotsiridze, funding for the Parliament of Georgia has been increased by GEL 30 million in the 2019 draft state budget as compared to 2012. The MP also added that in the same period, salaries of the MPs were not increased.

To make funding comparisons in time about funding of institution which spends state budget funds it is more appropriate to use relative figures instead of nominal ones. Given the annual growth of nominal figures of budget revenues and expenses, allocations for certain spending institutions increase as well. To analyze funding allocated for the Parliament of Georgia in time we need to take a look at allocations for the Parliament of Georgia to total state budget allocations ratio, because as a result of inflation, costs for goods and services required for functioning of the Parliament of Georgia do fluctuate. For instance, consumer prices have increased by 18% since 2012. Therefore, goods and services required for functioning of the Parliament of Georgia is more expensive today as compared to past years.

In accordance with the 2019 state budget, funding for the Parliament of Georgia and associated organizations is GEL 64.7 million, which constitutes 0.5% of total state budget allocations. In 2012, funding for the Parliament of Georgia was GEL 36.4 million, which constituted 0.47% of total budget allocations of the same year. Funding for the Parliament of Georgia in 2019 is GEL 28.3 million more as compared to 2012. Of note is that in 2013, funding for the Parliament of Georgia increased immediately by GEL 21.9 million and reached GEL 58.3 million (share in total allocations increased to 0.72%). This growth is largely related to relocation of the Parliament of Georgia to Kutaisi, when capital expenditures of the legislative institution increased by GEL 15 million and these were one-off expenses. In 2014-2015, nominal figures of funding for the Parliament of Georgia decreased, whilst since 2016 it has returned to growth trend, although its share in total allocations has started to decrease. Finally, in the 2019 draft state budget nominal figures of funding for the Parliament of Georgia and associated organizations are increased by GEL 28.3 million as compared to 2012, whilst the relative figure of funding for the Parliament of Georgia is only 0.03% more in 2019 as compared to 2012. In addition, allocations for the Parliament of Georgia to total budget allocations ratio in 2009-2012 is similar to current figure and amount to 0.5% on average.

Graph 1: Funding for the Parliament of Georgia and Associated Organisations (GEL Million)

Source:Ministry of Finance of Georgia

As a labour remuneration, currently an MP receives a wage, which differs in accordance with MP’s parliamentary position. The Speaker of the Parliament has the highest labour remuneration – GEL 6,738, whilst the minor MPs, who do not hold any parliamentary positions, have the lowest labour remuneration. In turn, labour remuneration for the MPs has increased by GEL 833 since 2018. Here you can find detailed information about the labour remuneration of the MPs.

In 2018 state budget GEL 29.5 million was allocated for the Parliament of Georgia’s labour remuneration component, which was a total sum of labour remuneration of the MPs and the staff members of the Parliament of Georgia. This did not include labour remuneration of contracted employees of the Parliament of Georgia. This type of employees includes the members of staff of the Parliamentary Majority/Parliamentary Minority and fractions, assistants of the MPs, employees of bureaus of majoritarian MPs and other individuals. Their labour remuneration is categorized under goods and services component and it amounts nearly GEL 8 million for 2018. In regard to the 2019 state budget, labour remuneration of the Parliament of Georgia and associated organizations is planned to increase up to GEL 31.2 million, whilst the labour remuneration of the contracted employees will amount nearly GEL 9 million.

Graph 2: Labour Remuneration of the Parliament of Georgia and Associated Organisations (GEL Mln, %)

Source:Ministry of Finance of Georgia

Despite the fact that nominal amount of labour remuneration of the Parliament of Georgia and associated organizations is GEL 6.4 million more in the 2019 state budget as compared to 2012, for comparison in time of importance is not the nominal figures of labour remuneration, but the analysis of relative value. In this regard, labour remuneration of the Parliament of Georgia to total state budget labour remuneration ratio was 2.36% in 2012 and it has been declining, having dropped to 2.09% based on 2018 spending plan. In accordance with the 2019 draft state budget, similar to total amount of funding, the aforementioned ratio is 0.03 percentage points higher (2.12%) and lags behind the respective figure of 2012.



[1] Authority to make payment / provide funding within the by the state budget envisaged limits.


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