On December 29, 2006 at the extraordinary session of the Parliament of Georgia the Prime Minister of Georgia Zurab Noghaideli presented the draft law On 2007 State Budget of Georgia. He stated that the draft budget estimates the revenues in the amount of 3.7 billion GEL, expenditures - 4 billion GEL, the deficit financing source - 365.5 million GEL. In kind of tax revenues are estimated 2.9 billion GEL, nontax revenues - 285 million GEL, in kind of grants - 249 million GEL and in kind of revenues from privatization - 200 million GEL (that is by 100 million GEL more than in the first draft budget). As compared with the previous draft the final draft law provide the increase in the financing of the energy ministry by 106 million GEL because the ministry shall issue credits to the gas distributing companies in order not to grow the customer's gas tariff from January 1. Also in comparison with the first draft budget the financing of the military sphere will increase up to 513.2 million GEL (were 392.5 million GEL). According to the draft budget next year the gross domestic product will increase by 7.5 % and amount to 16 billion GEL. The inflation rate is estimated at 6%. Zurab Noghaideli stated that the priorities of the next year budget will be the modernization of the defence sphere, health and education reforms, road construction program and energy sector rehabilitation and construction.
Next year the budgetary expenditures according to the sphere will be distributed as follows: ministry of labor, health and social affairs - 916 million GEL, defence ministry - 513.2 million GEL, finance ministry - 916 million GEL, economic development ministry - 419.5 million GEL, energy ministry - 756.6 million GEL, justice ministry - 117 million GEL, foreign ministry - 49.9 million GEL, interior ministry - 297.7 million GEL (where 46 million GEL will be assigned to the frontier guard police), education and science ministry - 389.3 million GEL, culture, monument protection and sports ministry - 65.3 million GEL, refugees and accomodation ministry - 44.1 million GEL, agriculture ministry - 47.9 million GEL, environment protection and natural resources ministry - 34.9 million GEL, staff of the state minister for conflict settlement - 503 000 GEL; staff of the state minister for integration in European and Euro-Atlantic structures - 968 000 GEL, staff of the state minister for reform coordination - 440000 GEL; staff of the state minister in civil integration - 200 000 GEL.
Upon completion of his address the Prime Minister answered the questions of MPS. The "Right Opposition" asked Zurab Noghaideli about the increased budget of the defense ministry.
"Why the defense department has the increased financing while no military operations are carried against Georgia neither any energy and economic war, - stated the leader of the Right Opposition Davit Gamkrelidze. The Prime Minister answered that no military operations are planned but the defense ministry shall be always in alert. He said that like in previous years the reforming and modernization of the defense sphere are the main national priorities and the natural process for the state which has lost its territories and is striving for integration to NATO.
The legislative body adopted the state budget for 2007 (by 150 pro and 7 contra).
