Бюджетный кодекс Грузии

 

 

LAW OF GEORGIA

BUDGET CODE OF GEORGIA

 

Title I – General Provisions

 

Chapter I – General Provisions

 

Article 1 – Purpose of the Code

This Code shall determine the principles of the formation of the budgetary system of Georgia, regulate the procedure for the preparation, consideration and approval of draft State Budget, draft republican budgets of the autonomous republics and draft budgets of municipality, as well as the procedures for the execution, reporting and control thereof, and the budgetary relations and responsibilities of central authorities, the authorities of the autonomous republics and municipalities of Georgia, and the legal entities created or established by those authorities.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014  

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 1¹ – Scope of the application of the Code

1. This Code shall apply to the central authority, the bodies of autonomous republics and local authorities of Georgia, legal entities and organisations created/established by them, except for the exceptions provided for by paragraph 2 of this article, as well as to state enterprises belonging to the governmental sector.

2. This Code shall not apply to the National Bank of Georgia, national regulatory bodies and entrepreneurial legal entities, except for state enterprises belonging to the governmental sector provided for by paragraph 1 of this article, as well as to membership-based legal entities, except for the cases when these are organisations authorised to manage funds within the framework of programmes/subprogrammes determined by relevant budgets provided for by this Code.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 2 – Budgetary System of Georgia

The budgetary system of Georgia shall be a set of budgetary relations regulated by legal acts for the purpose of mobilising and using funds to perform the functions of the central authority, autonomous republics and local authorities of Georgia.

 

Article 3 – Legal grounds for the Budgetary System of Georgia

The budgetary powers of the participants of the budgetary system of Georgia are exercised on the basis of the Constitution of Georgia , the Organic Law of Georgia On Economic Freedom , the Constitutional Law of Georgia On the Status of the Autonomous Republic of Ajara , the Organic Law of Georgia Local Self-government Code , the Organic Law of Georgia On the Approval of the Constitution of the Autonomous Republic of Ajara , this Code, the Law of the Autonomous Republic of Ajara On the Budgetary Process and Powers of the Autonomous Republic of Ajara, the legislation of Georgia on taxes and fees, other legislative and subordinate normative acts of Georgia, as well as legal acts adopted (issued) by the central authority, the bodies of autonomous republics and local authorities of Georgia.

Article 4 – Basic principles of the Budgetary System of Georgia

1. Each participant in the budgetary system of Georgia shall respect the following principles at all stages of a budgetary process:

(a) comprehensiveness – full reflection of all budget revenues, payables and balance changes in the relevant budgets;

(b) transparency – the publicity of procedures for reviewing draft budgets in representative bodies for the public and mass media; the publication of approved budgets and reports on their implementation; the availability of budget information (except for confidential information) to any individual and legal entity;

(c) accountability – the responsibility of all participants in the budgetary process for the activities carried out by them and the information submitted on the budget;

(d) independence – the independence of the State Budget of Georgia, the republican budgets of autonomous republics and the budgets of municipalities, which are secured by their own revenues and balances, as well as the right to independently determine their own payables in accordance with the legislation of Georgia;

(e) unity – management by the central authority, the bodies of autonomous republics and local authorities of Georgia, on a common basis, with a single budgetary classification, a single accounting system, and uniform principles of state financial control;

(f) universality – the use of all budget revenues to finance common payables, except for cases determined by this Code. In addition, no revenue, except for revenues financed by donors, shall be used specifically to finance a specific payable. The retention of revenues received by a budgetary organisation for its own purposes shall be prohibited, except for cases where a  budgetary organisation is a legal entity under public law and/or a non-entrepreneurial (non-commercial) legal entity;

(g) consolidation – the inclusion of the revenues and payables of the budgets of all levels in the unified treasury account system, the payment of payables in accordance with the procedure established by the legislation of Georgia, the management of the accounts of the unified treasury account system by the State Treasury and their placement in the National Bank of Georgia and/or other banking institutions.

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 5 – Budgetary process

The budgetary process shall be an integral part of the budgetary system of Georgia. The budgetary process shall be the activity of participants in the budgetary system of Georgia, which shall include the preparation, submission, discussion, approval, clarification of a draft budget, budget execution, reporting and control.

 

Article 6 – Definitions of terms used in the Code

The terms used in this Code shall have the following meanings:

(a) the bodies of the autonomous republics – the bodies of the autonomous republics of Abkhazia and Ajara;

(b) local authority – the bodies of a municipality;

(b¹) legal entity under public law – for the purposes of this Code, a legal entity with the status of a legal entity under public law provided for by the legislation of Georgia, which:

b¹.a) is created/established by a relevant law, the ordinance of the Government of Georgia or the administrative act of a state government body on the basis of the law, or a legal entity under public law established by that legal entity under public law;

(b.b) is created/established by the normative act of the supreme executive body of an autonomous republic, or a legal entity established by that legal entity under public law;

(b¹.c) is created/established by the relevant body of a municipality, in accordance with the procedure established by the Organic Law of Georgia Local Self-Government Code, or a legal entity established by that legal entity under public law;

(b²) non-entrepreneurial (non-commercial) legal entity – a non-entrepreneurial (non-commercial) legal entity provided for by the legislation of Georgia, which:

(b².a) is created/established in accordance with the procedure established by the legislation of Georgia by a central authority of Georgia and/or a legal entity established by it;

(b².b) is created/established in accordance with the procedure established by the legislation of Georgia by the body of an autonomous republic and/or a legal entity established by it;

(b².c) is created/established in accordance with the procedure established by the legislation of Georgia by a municipality/municipalities and/or is subject to its/their control and/or the control of a legal entity established by it/them;

(b³) a state enterprise belonging to the governmental sector – a state enterprise created with a participatory interest of a state, in accordance with the budgetary classification of Georgia, reflected in the register approved by the order of the Minister of Finance of Georgia, belonging to the governmental sector:

(b³.a) a state enterprise under the management of the central authority;

(b³.b) a state enterprise under the management of the relevant body of an autonomous republic;

(b³.c) a state enterprise under the management of the relevant body of a municipality;

(c) budget – a set of revenues, payables and balance changes for the purpose of fulfilling the functions and obligations of the central authority, autonomous republics and local authorities of Georgia, which is approved by the relevant bodies of the central authority, autonomous republics and local authorities of Georgia;

(c¹) the budget of a legal entity under public law/non-entrepreneurial (non-commercial) legal entity – a set of revenues received from all sources permitted by the legislation of Georgia, payables from these sources and changes in the balance for the purpose of fulfilling the functions and obligations of a legal entity provided for by points (b¹) or (b²) of this article, which is approved in accordance with the procedure established by the legislation of Georgia;

(c²) the budget of a state enterprise belonging to the governmental sector – a set of revenues received from all sources permitted by the legislation of Georgia, payables from these sources and changes in the balance for the purpose of fulfilling the functions and obligations of a legal entity provided for by point (b³) of this article;

(d) the consolidated budget of Georgia – the consolidated budget of the state, republican budget of the autonomous republics and municipal budgets of Georgia. The consolidated budget shall not be subject to approval by any representative body of government;

(d¹) unified State Budget – a consolidated budget of the central authority, unified republican budgets of autonomous republics and unified municipal budgets of municipalities. The unified State Budget shall not be subject to approval by any representative body of government;

(e) State Budget – a set of revenues, payables and balance changes approved by the Parliament of Georgia for the purpose of fulfilling the functions and obligations of the central authority of Georgia;

(e¹) central budget – a consolidated budget of the state and the budgets of legal entities provided for by points (b¹.a), (b².a) and (b³.a) of this article. The central budget shall not be subject to approval by any representative body of government;

(f) the consolidated budget of an autonomous republic – the consolidated budget of the republican budget of the Autonomous Republic of Abkhazia or Ajara and, accordingly, the municipalities therein. The consolidated budget of an autonomous republic shall not be subject to approval by any representative body of government;

(f¹) the unified budget of an autonomous republic – the consolidated budget of the unified republican budget of an autonomous republic and the unified municipal budgets of the municipalities therein. The unified budget of an autonomous republic shall not be subject to approval by any representative body of government;

(g) the republican budget of an autonomous republic – a set of receivables, payables and changes in the balance approved by the Supreme Council of an autonomous republic for the purpose of fulfilling the functions and obligations of the government of an autonomous republic;

(g¹) the unified republican budget of an autonomous republic – the consolidated budget of the republican budget of an autonomous republic and the budgets of legal entities provided for by points (b¹.b), (b².b) and (b³.b) of this article. The unified republican budget of an autonomous republic shall not be subject to approval by any representative body of government;

(h) a municipal budget – a set of revenues, payables and balance changes approved by the representative body of a municipality – the Sakrebulo, for the purpose of fulfilling the functions and obligations of municipal bodies;

(h¹) a unified municipal budget – a consolidated budget of the municipal budget and the budgets of legal entities provided for by points (b¹.c), (b².c) and (b³.c) of this article. The unified municipal budget shall not be subject to approval by any representative body of government;

(i) an approved budget – a state budget, the budget of an autonomous republic or a municipal budget approved by the representative body of the relevant government;

(j) an adjusted budget – the state budget, republican budget of an autonomous republic or municipal budget adjusted on the basis of Articles 31, 69 and 92 of this Code;

(j¹) the approved budget of a legal entity under public law/non-entrepreneurial (non-commercial) legal entity – the budget provided for by point (g¹) of this article, which is approved in accordance with the procedure established by the legislation of Georgia;

(j²) the adjusted budget of a legal entity under public law/non-entrepreneurial (non-commercial) legal entity – the budget of a legal entity under public law/non-entrepreneurial (non-commercial) legal entity provided for by point (k¹) of this article, adjusted on the basis of Articles 31, 69 and 92 of this Code;

(k) an appropriation – the powers to make payments within the budgeted amount during a budget year;

(l) budget breakdown – monthly and/or quarterly distribution of budget revenues, payables and balance changes according to budgetary classification (except for expenditures and functional classification of operations on non-financial assets);

(m) a municipality, own and delegated powers – shall correspond to the definitions included in the Organic Law of Georgia Local Self-Government Code;

(n) (deleted – 14.12.2018, No 4017) ; 

(o) a targeted transfer – funds received by a municipal budget from the state budget and/or the republican budget of an autonomous republic in the form of financial assistance for the purpose of exercising delegated powers;

(p) a special transfer – financial assistance between the state budget, republican budget of an autonomous republic and municipal budgets for the purpose of eliminating the consequences (damage) of natural disasters, ecological and other types of disasters, hostilities, epidemics and other emergency situations, as well as for the implementation of other measures;

(p¹) a capital transfer – financial assistance between the state budget, republican budget of an autonomous republic and municipal budgets for the implementation of a capital project, which is related to an increase in the non-financial assets of a transfer recipient;

(q) spending institution – for the state budget and the republican budgets of an autonomous republic – a budgetary organisation included in the category I of a programme classification, and for the municipal budget – a municipality;

(r) a budgetary organisation – an organisation established by the central authority, an autonomous republic, local authority of Georgia and/or an organisation accountable to it/subject to its control, as well as the other legal entity under public law/non-entrepreneurial (non-commercial) legal entity (if any) if it is an organisation authorised to manage appropriations within the framework of a programme/subprogramme determined by the budget of the corresponding level. When calculating the debt of the Government of Georgia, an enterprise belonging to the governmental sector shall be a budgetary organisation;

(s) the State Treasury – the Treasury Service, a state subordinated agency of the Ministry of Finance of Georgia;

(t) a financial body – the relevant body of the executive authority of a municipality, autonomous republic, which is responsible for the preparation of a draft municipal budget, the draft republican budget of an autonomous republic, and for the management and coordination of the implementation of budget;

(u) a budget year – a calendar year;

(v) an annual budget – a budget approved by the representative body of the central authority, autonomous republic, or municipality of Georgia, the approved budget of a legal entity under public law/non-entrepreneurial (non-commercial) legal entity provided for by this Code in accordance with the procedure established by the legislation of Georgia for a relevant budget year, as well as the budget of a state enterprise belonging to the governmental sector;

(w) a balance – monetary funds available on the relevant budget account for the relevant period;

(x) a free balance – the part of a balance that is not provided for any purposes;

(y) a balance change – the use or accumulation of monetary funds available in the relevant budget account for the relevant period;

(z) monetary funds – cash funds and deposits in national and foreign currencies of the State Treasury, autonomous republics, municipalities, legal entities provided for by points (b¹), (b²) and (b³) of this article, which are placed on the accounts of the Unified Account System of the State Treasury, other accounts of the State Treasury and accounts in commercial banks and micro banks;

(za) cash flow – the inflow and outflow of monetary funds provided for by point (z) of this article into and from the accounts provided for by the same point;

(zb) undertake a payment obligation – the registration of a liability in the State Treasury for payments to be made by a budgetary organisation during the budget year in accordance with the established procedure;

(zc) undertake a financial obligation – commitment by a budgetary organisation to allocate funds from the budget in the future;

(zc¹) priority – the main direction of appropriations provided for by the state, republican and municipal budgets of Georgia, within the framework of which spending institutions/budgetary organisations implement programmes/subprogrammes. Within the framework of a priority, measures necessary for the functioning of various budgetary organisations may also be taken into account;

(zd) programme – a set of measures to be implemented to achieve the goals of priorities defined by the budget, which are grouped according to similar content and are implemented to achieve one final result, and one spending institution is responsible for the implementation thereof;

(ze) subprogramme – a set of measures to be implemented by a budgetary organisation within the framework of the programme of a spending institution.

Title II – General Norms Regulating the Budgetary System of Georgia and the Distribution of Revenues between Budgets

 

Chapter II – General Norms Regulating the Budgetary System of Georgia

 

Article 7 – Powers and responsibilities of the participants of a budgetary process

1. The following bodies shall be responsible for the preparation of a draft budget, the implementation of a budget and reporting:

(a) for the State Budget – the Government of Georgia;

(b) for the republican budget of an autonomous republic – the highest executive body of a relevant autonomous republic;

(c) for the municipal budget – the executive body of a relevant municipality;

(d) for the budget of a legal entity under public law/non-entrepreneurial (non-commercial) legal entity provided for by this Code – a body determined by the legislation of Georgia;

(e) for the budget of a state enterprise belonging to the governmental sector provided for by this Code – a relevant state enterprise.

2. The following bodies shall be authorised to review and approve a draft budget, and control the budget:

(a) for the State Budget – the Parliament of Georgia;

(b) for the republican budget of an autonomous republic – the highest representative body of a relevant autonomous republic;

(c) for the municipal budget – the representative body of a relevant municipality – the Sakrebulo;

(d) for the budget of a legal entity under public law/non-entrepreneurial (non-commercial) legal entity provided for by this Code – a body determined by the legislation of Georgia.

3. The following bodies shall be responsible for the preparation of statistical information:

(a) for the unified State Budget, consolidated budget and central budgets – the Ministry of Finance of Georgia;

(b) for the consolidated budget of an autonomous republic, unified republican and unified budgets of an autonomous republic – the financial body of a relevant autonomous republic;

(c) for the unified municipal budget – the financial body of a relevant municipality.

4. In order to ensure the unity of the budgetary process at all levels of the budgetary system of Georgia and compliance with this Code, the Minister of Finance of Georgia shall issue appropriate legal acts.

5. Regulations determined for legal entities under public law by this Code and other legislative acts of Georgia shall apply to relations related to the budgetary process of non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b²) of this Code, including provisions related to the following measures:

(a) taking loan and suretyship;

(b) the determination of a budget, payroll and payroll fund;

(c) accounting of financial and economic activities, reporting and preparing a balance sheet.

6. In relations related to a budgetary process, including procurement procedures, funds allocated from a relevant budget shall be considered as funds received from that source before they are transferred for the needs of economic activities and/or households, regardless of the status of a legal entity that ultimately disposes of them.

7. The revenues, payments and changes in the balance of all budgetary organisations shall be recorded through the unified treasury account, regardless of their source of origin, except for the cases determined by this Code.

8. The financial bodies of autonomous republics, the financial bodies of municipalities and legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹) and (b²) of this Code:

(a) shall be authorised to open current accounts and/or deposit accounts in commercial banks and micro banks for the purpose of receiving additional income. It shall be prohibited for the account holder to carry out other operations on the current account, except for transferring funds from an account opened in the State Treasury, returning funds to an account opened in the State Treasury, transferring funds to a deposit account, and returning funds from a deposit account. Legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹) and (b²) of this Code shall also be authorised to use the funds available on these accounts as collateral for bank guarantees, loans and letters of credit for the implementation of economic activities;

(b) shall be authorised, with the consent of the Ministry of Finance of Georgia, to open accounts in commercial banks and micro banks for the purpose of placing funds temporarily at their disposal and/or those funds that require confirmation by authorised persons before being recognised as income and which, in accordance with the legislation of Georgia, may be transferred to persons authorised to receive funds, directed to the account of a relevant account holder in the relevant budget or the State Treasury, or returned to the payer. Funds credited to that account in the form of interest belong to an account holder and shall be credited to his/her account in the State Treasury upon accrual.

9. As a result of the activation of bank guarantees provided for by paragraph 8(a) of this Article, as well as in cases specified by the legislation of Georgia, in accordance with the request submitted by a third party, the amounts deducted from the accounts provided for by the same paragraph shall be recorded by the State Treasury and reflected in the statements in accordance with the procedure approved by the Minister of Finance of Georgia .

10. If this follows from international treaties of Georgia, legal entities provided for by Article 6(b¹) and (b²) of this Code may be subject to a different procedure than that provided for by this Code.

11. The accounts of legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹) and (b²) of this Code shall be opened in the unified treasury account system. The right to control the management and operation of those accounts, as well as to issue permits for the transfer of funds from those accounts, except for exceptional cases provided for by the legislation of Georgia, shall be reserved exclusively to a relevant legal entity. It shall be prohibited to restrict payments to be made by those legal entities within the limits of funds available on their accounts in the unified treasury account system in accordance with the procedure established by the legislation of Georgia.

11¹. The State Treasury shall be authorised to reflect the amounts deducted from the unified treasury account by the legal entity under public law called National Bureau of Enforcement in the process of compulsory enforcement of obligations imposed by court decisions on legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹) and (b²) of this Code if the said budgetary organisations do not have a corresponding balance on their accounts; the deducted amounts shall be reflected in the budget of an appropriate level from the programme code provided for by a fund for the repayment of debts of previous years and the enforcement of court decisions created for that purpose.  

12. The relevant modules of the public finance management information (electronic) system of the Ministry of Finance of Georgia shall be used in the budgetary process.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

Law of Georgia No 2625 of 22 February 2023 – website, 10.3.2023

 

Article 8 – Budgetary classification of Georgia

1. Budgetary classification shall include the classifications of revenues, expenditures, functional classifications of expenditures and operations with non-financial assets, non-financial assets and operations on them, financial assets and liabilities and operations on them, as well as programme classification. Programme classification shall be a set of priorities, programmes/subprogrammes and shall be determined by a budget. For the State Budget of Georgia and republican budgets of the autonomous republics of Georgia, the programme classification shall also include spending institutions and, accordingly, the payables of general state importance and general republican importance.

2. Budgetary classification, in addition to the programme classification, shall be approved by the Minister of Finance of Georgia based on consultations with the State Audit Office and with the agreement of the Finance and Budget Committee of the Parliament of Georgia.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 6550 of 22 June 2012 – website, 29.6.2012

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

 

Article 9 – Programme budget

1. In the programme budget, appropriations shall be allocated according to priorities, programmes/subprogrammes. In the State Budget and republican budgets of autonomous republics of Georgia, appropriations shall also be allocated according to spending institutions and, accordingly, payables of general state importance and general republican importance.

2. The programme budget shall include information on programmes/subprogrammes, their expected results and performance assessment indicators, as well as information on investment/capital projects.

3. The methodology required for compiling the programme budget shall be approved by the Minister of Finance of Georgia in agreement with the Finance and Budget Committee of the Parliament of Georgia.

4. The methodology for the management of investment/capital projects shall be approved by the Government of Georgia.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 10 – Budget revenues

Budget revenues shall be the total amount of cash received by the budget during the reporting period:

(a) revenues;

(b) non-financial assets (funds received from the transactions with non-financial assets);

(c) financial assets (funds received from transactions with financial assets, excluding the use of the balance);

(d) liabilities (funds received after undertaking liabilities);

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

 

Article 11 – Payables of the budget

Budget payables shall be the total amount of cash to be disbursed from the budget during the reporting period:

(a) expenditures;

(b) non-financial assets (funds used for operations with non-financial assets);

(c) financial assets (funds used for operations with financial assets, excluding the accumulation of balances);

(d) liabilities (funds allocated to cover the main part of liabilities).

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

 

Article 12 – Budget surplus and deficit

1. The difference between budget revenues and expenditures shall be the budget operating balance, and the difference between the budget operating balance and changes in non-financial assets shall be a gross budget balance.

2. A positive gross balance shall be a budget surplus, and a negative gross balance shall be a budget deficit.

 

Article 13 – Appropriations in case of the non-approval of a budget

1. If the State Budget and republican budgets of autonomous republics are not approved before the beginning of a budget year, the Minister of Finance of Georgia, in case of the State Budget, and the executive body of the relevant autonomous republic, in case of the republican budget of an autonomous republic, shall be authorised to allocate to spending institutions on a monthly basis an amount not exceeding 1/12 of the approved appropriations of the previous budget year.

2. In case of non-approval of the municipal budget before the beginning of a budget year, the executive body of the relevant municipality shall be authorised to allocate to each priority on a monthly basis an amount not exceeding 1/12 of the approved appropriations of the previous budget year.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 14 – Accounting and reporting methodology and responsibility

1. The Minister of Finance of Georgia shall issue appropriate normative acts, taking into account international standards, which shall ensure compliance with standard accounting procedures and reporting requirements by budgetary organisations of the central authority, the bodies of autonomous republics and local authorities of Georgia.

2. The central authority, the bodies of autonomous republics and local authorities of Georgia shall be responsible for accounting and control of revenues, payables and changes in balances and their compliance with the normative acts issued by the Minister of Finance of Georgia.

3. The Ministry of Finance of Georgia shall be responsible for accounting for budget revenues, payables and changes in balances, as well as operations related to the state debt and other operations imposed by the legislation of Georgia.

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 15 – Methodology for compiling the budget execution report

1. The State Budget spending institutions shall prepare a budget execution report taking into account the requirements of this Code, on the basis of a legal act issued by the Minister of Finance of Georgia .

2. The budgetary organisations of municipalities (except for the Tbilisi City Municipality) shall prepare a budget execution report taking into account the requirements of this Code, on the basis of a legal act issued by the Minister of Finance of Georgia, and the budgetary organisations of the Tbilisi City Municipality – in accordance with the procedure established by the relevant authorised body, taking into account the requirements of Articles 85, 86 and 87 of this Code.

3. The spending institutions of the republican budget of an autonomous republic shall prepare a budget execution report in accordance with the procedure established by the relevant authorised body of an autonomous republic, taking into account the requirements of Articles 108, 109 and 110 of this Code.

4.  A state enterprise belonging to the governmental sector provided for by Article 6(b³) of this Code, shall prepare a budget execution report on the basis of a legal act issued by the Minister of Finance of Georgia.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 16 – Cash execution of a budget

1. The State Budget, the republican budgets of autonomous republics, and municipal budgets, as well as the budgets of legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by this Code, shall be executed using the cash method.

2. The power to issue appropriations provided for by a relevant budget shall be terminated at midnight on December 31 of the current budget year.

3. ( Deleted – 12.12.2014, No 2935 ).

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 17 – Budget revenue execution

1. Responsible agencies shall ensure the full and timely mobilisation of revenues allocated to the budget in accordance with the legislation of Georgia.

2. Revenues approved by an annual budget shall be a forecast and shall not limit the actual collection by exceeding the indicators.

3. All revenues of the State Budget, republican budgets of autonomous republics and and municipal budgets, as well as of legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by this Code shall be immediately directed to a relevant budget.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 18 – Execution of budgetary payments

1. It shall be prohibited to incur liabilities for payment in excess of the appropriations provided for by a relevant adjusted budget.

2. The powers of a budgetary organisation to incur liabilities for payment and to make payments shall be determined by the procedures issued by the Minister of Finance of Georgia in compliance with the requirements of this Code.

3. It shall be prohibited to incur financial liabilities in excess of the appropriations, except for liabilities assumed under the international treaties of Georgia and multi-year procurements. A multi-year financial liability may be incurred only within the limits of the appropriations provided for by a relevant medium-term plan for the spending institution/priority. In such a case, the funds necessary to fulfil a multi-year financial liability shall be included in the draft budget of a relevant year by the spending institutions of the State Budget and of the autonomous republic, and shall be included in a relevant priority by the executive body of a municipality. By the decision of a relevant executive authority, it shall be possible to make multi-year financial commitments that differ from the parameters provided for by a relevant medium-term plan.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 18¹ – Refund of overpaid or erroneously paid budget revenue and transfer to another tax payment account

1. The procedure for refunding overpaid or erroneously paid budget revenues to the unified treasury account and transferring revenues to another type, as well as refunding value added tax paid on goods purchased in Georgia by a foreign citizen, shall be determined by the order of the Minister of Finance of Georgia .

2. Accounting and reporting on the execution of revenues received from taxes shall be carried out without funds directed to the refund sub-account.

3. When accounting and reporting on the execution of budget revenues, adjustments shall be made by returning excessively or erroneously paid revenues or transferring them to another type of revenue.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014    

 

Article 18² – Fulfilment of tax and/or other obligations by another person

A tax and/or other obligation to be paid to the budget by a taxpayer/person, as determined by the legislation of Georgia, may be fulfilled by another person in accordance with the procedure specially determined by the National Bank of Georgia, for which he/she shall submit to a body receiving tax and/or duty a document confirming the payment of the tax and/or duty provided for by the legislation of Georgia or a document established in accordance with the procedure determined by the Minister of Finance of Georgia. In addition, the confirmation of the payment of the tax and/or duty may be carried out in electronic form, in accordance with the procedure established by the Minister of Finance of Georgia. The fulfilled tax and/or other obligation shall not be returned to the third party.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014  

Article 18³ – Cash management and disbursement

1. Cash shall be disbursed from the unified treasury account to finance the payments of budgetary organisations in accordance with the budget breakdown.

2. It shall be prohibited to disburse cash from unified treasury account to finance the payments of budgetary organisations in excess of indicators established by the budget breakdown.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 3975 of 15 December 2023 – website, 26.12.2023

Article 18⁴ – The State Treasury

1. The State Treasury shall be responsible for the complete and correct accounting, transparency and reporting of the income, payments and balance changes of the State Budget, republican budgets of autonomous republics and municipal budgets, as well as of legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by this Code.

2. The State Treasury shall have a unified account opened at the National Bank of Georgia. The State Treasury shall be authorised to open additional accounts in other banks.

3. The right to manage and control the operation of the unified treasury account and other accounts of the State Treasury, as well as to issue permits to write off cash from these accounts, except for exceptional cases provided for by the legislation of Georgia, shall be exclusively reserved to the State Treasury.

4. Cash at the disposal of the State Treasury shall be kept in the unified treasury account of the State Treasury, as well as in other accounts of the State Treasury.

5. The State Treasury shall prepare a statement on the movement of cash at the end of each month.

6. A bank account of a budgetary organisation shall not be opened without the consent of the State Treasury, except for the cases provided for by Article 7 of this Code. The State Treasury shall be authorised to revoke the permission to open and close a bank account. A budgetary organisation shall ensure the full and immediate recording of all income received in the unified treasury account of the State Treasury, unless otherwise provided for by this Code.

7. The State Treasury shall be authorised to use electronic documents in its activities.

8. A budgetary organisation shall be authorised to store as an electronic copy and/or print any document submitted electronically to the State Treasury and confirmed by the State Treasury Electronic System – eTreasury.

9. The security norms, rules and service conditions of the eTreasury shall be determined by the order of the Minister of Finance of Georgia .

10. The State Treasury shall be authorised to allocate the funds at its disposal in order to receive additional budgetary revenues in accordance with the procedure approved by the Government of Georgia.

11. The State Treasury shall be authorised to provide services to an enterprise with state equity participation on the basis of an agreement.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 660 of 21 April 2017 – website, 10.5.2017

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 19 – Audit of budget execution and spending of budget appropriations by the State Audit Office of Georgia

The State Audit Office of Georgia, in accordance with the procedure established by the legislation of Georgia, shall audit the execution of the State Budget of Georgia, republican budgets of autonomous republics and municipal budgets and the spending of budget appropriations.

Law of Georgia No 6550 of 22 June 2012 – website, 29.6.2012

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 20 – Compliance of legal acts with budget parameters

1. Parliament may adopt a draft law that increases the expenditure of the State Budget for the current year, reduces revenues, or places the State under new financial obligations, only with the consent of the Government of Georgia, whereas the said draft law associated with the following budget year may be adopted by the consent of the Government of Georgia or within the scope of a document on Basic Data and Directions of the country presented by the Government of Georgia to the Parliament of Georgia.

2. The representative body of an autonomous republic/municipality may adopt a draft legal act that increases the expenditure of the republican budget and municipal budget of the current year, decreases revenues, and/or places an autonomous republic/municipality under new financial obligations, only after the consent of a relevant executive authority. The draft legal act related to the next budget year of the representative body of an autonomous republic/municipality – the Sakrebulo - shall comply with the budget parameters of the projected budget year, and if it leads to a change in the budget parameters of the next years, may be adopted only with the consent of the executive body of a relevant autonomous republic/municipality.

3. A decision made by the highest body of the public authority of Georgia, the public authority of an autonomous republic, which increases the amount of payments to the budget of a municipality or reduces its revenues, shall be compensated by a body that adopted it (from the State Budget or republican budget of an autonomous republic) during the year of that decision.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 21 – Powers to take a loan and issue state guarantees

1. State loans may be taken and state guarantees issued only by the Ministry of Finance of Georgia, in accordance with the procedure established by the legislation of Georgia.

2. Autonomous republics and local authorities shall have the right to take a loan from the Government of Georgia and/or from other sources only with the permission of the Government of Georgia.

 

Article 22 – State debt limits and state guarantees

1. The annual budget sets limits on the total amount of a state debt that may be outstanding by the end of a budget year. The limits shall be set separately for domestic and foreign debt. Loans from the National Bank of Georgia shall be subject to separate limits.

2. The annual budget law sets limits on external and internal state loan guarantees that may be issued during a projected budget year.

3. The Ministry of Finance of Georgia shall be responsible for the management of a state debt and other related issues.

Article 23 – Procedures for taking a state debt and issuing state guarantees

1. The Ministry of Finance of Georgia, within the limits determined by the annual budget and other normative acts, shall make decisions on taking a state debt and issuing state guarantees in accordance with the procedure established by the legislation of Georgia.

2. The Ministry of Finance of Georgia shall be authorised, in accordance with the procedure established by the legislation of Georgia, and in accordance with the Law of Georgia On State Debt , to take a loan in any form acceptable to its recipient and issuer. The Ministry of Finance of Georgia shall be free to choose the type of financial instrument, including its characteristics and terms. Within the interests of monetary policy, the Ministry of Finance of Georgia shall act on the basis of consultation with the National Bank of Georgia.

3. In accordance with the Organic Law of Georgia On the National Bank and on the basis of the written agreement concluded between the Ministry of Finance of Georgia and the National Bank of Georgia, the National Bank of Georgia shall ensure the implementation of the relevant decision on state debt.

 

Article 24 – Powers to grant loans

1. A loan may be granted from the state budget in accordance with the procedure established by this Code.

2. A loan may be granted from the republican budgets of autonomous republics and municipal budgets only with the consent of the Ministry of Finance of Georgia.

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Chapter III – Distribution of Revenues between Budgets

 

Article 25 – Procedure for the distribution of revenues between budgets

1. Revenues shall be distributed among the State Budget, republican budgets of the Autonomous Republics of Abkhazia and Ajara and municipal budgets in accordance with the Annex to this Code. The list of property of state significance and state-owned property specified in that Annex shall be established by the Ministry of Economy and Sustainable Development of Georgia.

2. Local taxes and fees shall be fully credited to the municipal budget.

3. Revenues credited to the republican budgets of the Autonomous Republics of Abkhazia and Ajara shall be distributed among the budgets of other levels of these republics in accordance with the procedure established by the highest representative bodies of the autonomous republics.

4. Fines/sanctions/surcharges imposed on contractors by budgetary organisations while implementing their activities and other revenues within the framework of funds allocated from the State Budget, republican budgets of autonomous republics and municipal budgets shall be directed to the relevant budget (the State Budget, the republican budgets of autonomous republics or municipal budget). Fines/sanctions/surcharges imposed on contractors while implementing activities within the framework of funding received from a donor in accordance with the legislation of Georgia shall also be directed to the relevant budget, unless otherwise determined by an agreement concluded with a donor.

Law of Georgia No 4108 of 17 December 2010 – LHG I, No 75, 27.12.2010, Art. 483

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 26 – Distribution of budget revenues from abolished taxes

According to the tax legislation of Georgia, budget revenues from abolished taxes shall be distributed as follows:

(a) budget revenues from the following abolished taxes shall be fully directed to the State Budget:

(a.a) flat tax on the import of cars;

(a.b) tax on owners of motor vehicles;

(a.c) tax for the use of public roads;

(a.d) tax on the entry of motor vehicles into the territory of Georgia and for overweight load;

(a.e) flat tax on the import of cigarillos and filter cigarettes;

(a.f) social tax;

(b) budget revenues from the following abolished taxes shall be fully directed to the republican budgets of the Autonomous Republics of Abkhazia and Ajara and and municipal budgets:

(b.a) tax on environmental pollution with harmful substances;

(b.b) tax on the use of natural resources;

(b.c) tax on the transfer of property;

(b.d) resort tax;

(b.e) hotel tax;

(b.f) advertising tax;

(b.g) tax on the use of local symbols;

(c) 80% of funds received from the small business tax and flat tax shall be directed to the State Budget, and 20% – to the republican budgets of the Autonomous Republics of Abkhazia and Ajara and and municipal budgets.

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 26¹ – Distribution and use of net profits of enterprises operating with state participation

1. Proposals on the distribution and use of net profits of enterprises operating with state participation shall be considered and decisions shall be made (except for decisions taken by the Government of Georgia and the cases provided for by paragraph 5 of this article) by a commission whose composition and procedure for activities shall be determined by the ordinance of the Government of Georgia .

2. The dividends to be transferred to the state from the net profits of enterprises operating with state participation, determined by the commission provided for by paragraph 1 of this article, shall be entirely directed to the State Budget of Georgia in accordance with row 9.1 of the table in the Annex to this Code (The Distribution of Revenues between the State Budget of Georgia, the Republican Budgets of the Autonomous Republics of Abkhazia and Ajara and Municipal Budgets According to Percentage Values).

3. The commission provided for by paragraph 1 of this article shall have the right to make a decision on the expediency of spending funds left for the enterprise from the net profits of an enterprise operating with state participation.

4. The Government of Georgia shall have the right to decide on the distribution and use of the net profits of enterprises operating with state participation, as well as on the use of such profits in a manner other than that provided for by paragraph 2 of this article.

5. The decision on the distribution and use of the net profit of an enterprise operating with state participation, the shares of which are listed on a recognised stock exchange of a foreign country, shall be made in accordance with the procedure established by the Law of Georgia on Entrepreneurs . In addition, the Government of Georgia shall be authorised to make a decision on the use of dividends that have to be transferred to the state from the net profit of the said enterprise in a manner other than that provided for by paragraph 2 of this article.

Law of Georgia No 4210 of 22 February 2011 – website, 10.3.2011

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 6331 of 25 May 2012 – website, 12.6.2012

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020    

 

Title III – State Budget

 

Chapter IV – General Norms for State Budget

 

Article 27 – Payables of state significance

1. Payables of state significance shall be appropriations provided for by the annual budget under the codes of category I, which include the following as separate codes:

(a) servicing and repayment of state foreign obligations;

(b) servicing and repayment of state domestic obligations;

(c) the Reserve Fund of the President of Georgia;

(d) the Reserve Fund of the Government of Georgia;

(e) the Fund for the Implementation of Projects in the Regions of Georgia;

(f) the Fund for the Repayment of the Debts of Previous Years and for the Enforcement of Court Decisions;

(g) transfers to autonomous republics and municipalities.

2. Other categories of payables of state significance may be determined by an annual budget.

3. In addition to the funds provided for by this chapter, the management of other payments of state importance shall be determined by an annual budget.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 28 – Reserve funds of State Budget

1. The State Budget shall establish the Reserve Fund of the President of Georgia and the Reserve Fund of the Government of Georgia. The volume of both of these reserve funds, taken together, shall not exceed 1% of the total amount of appropriations provided for by an annual budget. In accordance with the procedure established by this Code, the total volume of reserve funds may be increased by not more than 20% compared to the approved volume of each reserve fund.  

2. Funds from the Reserve Funds of the President of Georgia and the Government of Georgia shall be allocated to finance payments not foreseen by the State Budget. The directions of the expenditure of the Reserve Funds of the State Budget shall be determined by the President of Georgia and the Government of Georgia, respectively, in accordance with the volume determined by the adjusted budget. 

3. The Ministry of Finance of Georgia shall allocate funds from the Reserve Funds of the President of Georgia and the Government of Georgia on the basis of the relevant decision of the President of Georgia and the Government of Georgia, which shall include information on the amount and expediency of the funds.

4. If the amount to be allocated from the Reserve Fund of the Government of Georgia does not exceed GEL 100,000, the Prime Minister of Georgia, upon the proposal of the Minister of Finance of Georgia, shall be authorised to make a decision on the allocation of the amount.

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 29, 22.6.2010, Art. 189

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

 

Article 29 – the Fund for the Implementation of Projects in the Regions of Georgia

1. A fund for the implementation of projects in the regions of Georgia shall be established in the State Budget, the management of which shall be carried out in accordance with a decision adopted by the Government of Georgia.

2. The Ministry of Finance of Georgia shall allocate funds from the fund for the implementation of projects in the regions of Georgia on the basis of the relevant decision of the Government of Georgia.

3. The amount of the fund for the implementation of projects in the regions of Georgia shall be determined by an annual budget.

4. If the amount to be allocated from the fund for the implementation of projects in the regions of Georgia does not exceed GEL 100,000, the Prime Minister of Georgia, upon the proposal of the Minister of Finance of Georgia, shall be authorised to make a decision on the allocation of the amount.

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 29, 22.6.2010, Art. 189

Article 30 – Fund for the Repayment of the Debts of Previous Years and for the Enforcement of Court Decisions

1. A fund for the repayment of debts of previous years and for the enforcement of court decisions shall be established in the State Budget, the management of which shall be carried out in accordance with the procedure established by the legislation of Georgia and in accordance with a decision adopted by the Government of Georgia.

2. The Ministry of Finance of Georgia shall allocate funds from the fund for the repayment of debts of previous years and for the enforcement of court decisions on the basis of the relevant decision of the Government of Georgia.

3. The amount of the fund for the repayment of debts of previous years and for the enforcement of court decisions shall be determined by an annual budget.

4. If the amount to be allocated from the fund for the repayment of debts of previous years and for the enforcement of court decisions does not exceed GEL 100,000, the Prime Minister of Georgia, upon the proposal of the Minister of Finance of Georgia, shall be authorised to make a decision on the allocation of the amount.

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 29, 22.6.2010, Art. 189

Article 31 – Allocation of budget appropriations and changes in programme classification

1. The allocation of appropriations from one spending institution to another spending institution may be made only by making amendments to the annual budget law.

2. The allocation of funds between programmes, subprogrammes and budgetary classification articles of a spending institution may be carried out with the consent of the Ministry of Finance of Georgia.

3. The allocation of funds between programmes of a spending institution shall not exceed 5% of the appropriations provided for by the annual budget for the spending institution.

4. Based on the proposal submitted by spending institutions and decision made by the Government of Georgia, funds from the allocations allocated to spending institutions may be distributed to payments of state significance if the distributed funds do not exceed 2% of the allocations approved by an annual budget for payments of state significance. The Ministry of Finance of Georgia shall notify the Finance and Budget Committee of the Parliament of Georgia about the said distribution.

5. Based on the relevant legal act and proposals submitted by spending institutions, the Minister of Finance of Georgia shall be authorised to make changes (add a programme/subprogramme, change the name of a programme/subprogramme) in the programme classification.

6. The annual budget shall be adjusted by redistributing appropriations for payments of state significance, and the amendments provided for by paragraphs 2–5 of this article shall be implemented in accordance with the procedure established by the Minister of Finance of Georgia.

6¹. The Minister of Finance of Georgia shall determine the procedure for the adjustment of the budgets of legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.a) and (b².a) of this Code for other revenues (non-budgetary funds) permitted by the legislation of Georgia. That procedure shall establish only the procedural issues of budget adjustment, and the decision on budget adjustment shall be made by the relevant legal entity on its own in accordance with the procedure established by the legislation of Georgia, in agreement with the controlling body (if such an obligation exists).

7. If amendments to the state procurement plan of a budgetary organisation financed by the State Budget result in the redistribution of appropriations provided for by an adjusted budget, the budgetary organisation shall, prior to making amendments to the state procurement plan, distribute the funds between the relevant programmes, subprogrammes and budgetary classification articles in accordance with the procedure established by this article.

[7. If amendments to the public procurement plan of a budgetary organisation financed by the State Budget result in the redistribution of appropriations provided for by an adjusted budget, the budgetary organisation shall, prior to making amendments to the public procurement plan, distribute the funds between the relevant programmes, subprogrammes and budgetary classification articles in accordance with the procedure established by this article.  (Shall become effective from 1 January 2027)

Article 32 – Emergency budget

1. In the event of the introduction of the state of emergency or martial law in the entire territory of Georgia or in any part thereof, the Parliament of Georgia may approve an emergency budget submitted by the Government of Georgia for the targeted financing of measures related to the state of emergency or martial law.

2. During the operation of the emergency budget, the percentage restrictions established by Articles 28 and 31 of this Code shall be suspended.

Law of Georgia No 1599 of 20 November  2013 – website, 3.12.2013

 

Chapter V – Preparation, Submission and Approval of the Draft State Budget

 

Article 33 – Coordination of the process of the preparation and submission of the draft State Budget

The Ministry of Finance of Georgia shall coordinate and be responsible for the process of preparing and submitting the Draft State Budget.

 

Article 34 – Document on Basic Data and Directions of the country

1. The document on Basic Data and Directions of the country shall be the basic plan for the development of the country, which shall reflect information on medium-term macroeconomic and fiscal forecasts, as well as information on the basic directions of the development of the central authority, autonomous republics and local authorities of Georgia.

2. The Ministry of Finance of Georgia shall ensure the compilation of the document on Basic Data and Directions in coordination with the National Bank of Georgia, state representatives of administrative-territorial units, authorities of autonomous republics, local authorities and spending institutions determined by the Government of Georgia; for that purpose the above-mentioned officials and bodies shall be obliged to submit the requested information to the Ministry of Finance of Georgia.

3. In order to prepare the document on Basic Data and Directions of the country, the Government of Georgia shall, by ordinance, determine by March 1 of each year the list of information to be submitted by spending institutions, authorities of autonomous republics, municipalities (except for municipalities included in autonomous republics) and state enterprises belonging to the governmental sector, as well as the deadlines for the submission.

4. In order to agree basic data and directions with the committees of the Parliament of Georgia, the Government of Georgia shall, by June 1 of each year, submit to the Parliament of Georgia information on the main macroeconomic forecasts and the basic directions of the ministries of Georgia. The opinions of the committees of the Parliament of Georgia on the above information shall be sent to the Government of Georgia not later than June 20. The ministries of Georgia shall approve their medium-term action plans by June 30 of each year, which shall include priorities and the programmes and measures to be implemented to achieve them.

5. The Document on Basic Data and Directions of the country shall contain at least the following information:

(a) for the past, current, projected budget years and for the three budget years following the projected budget year:

(a.a) forecasts of basic macroeconomic indicators (nominal and real gross domestic product, economic growth, inflation, investments, etc.) and their description;

(a.b) aggregated indicators of revenues and expenditures, operations on financial and non-financial assets and liabilities of the state unified budget, consolidated budget of Georgia and State Budget;

(b) the analysis of the final results of the State Budget execution for the previous budget year and revised forecasts for the current budget year;

(c) for the projected budget year and the three budget years following the projected one:

(c.a) state priorities determined by the Government of Georgia;

(c.b) programmes of the state budget spending institutions determined by the Government of Georgia, their objectives and funding amounts;

(c.c) for informational purposes only, the medium-term priorities of autonomous republics and municipalities and the funding amounts, objectives and results of programmes and measures to be implemented to achieve them;

(c.d) aggregated indicators on the indicative maximum volume of appropriations provided for each state budget spending institution;

(c.e) the list of priority directions of the State Budget, within the framework of which state budget spending institutions reflect the programmes and subprogrammes in the budget request application;

(d) the indicative maximum number of employees for the projected budget year according to spending institutions;

(e) basic fiscal indicators projected within the framework of fiscal procedures defined by the Organic Law of Georgia On Economic Freedom.  

6. The Government of Georgia shall approve the first version of the Document on Basic Data and Directions of the country (except for the information provided for by paragraph 5(c.c) of this article) not later than July 10. 

7. The Document on Basic Data and Directions of the country (except for the information provided for by paragraph 5(c.c) of this article) shall be submitted to the Parliament of Georgia in accordance with Articles 38 and 39 of this Code.

8. The Government of Georgia shall ensure the consistency of the draft law on the State Budget and the Document on Basic Data and Directions of the country. The ministries of Georgia shall ensure the consistency of their medium-term action plans approved on the basis of paragraph 4 of this article with the Document on Basic Data and Directions of the country and the Law on the State Budget.  

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011  

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 3461 of 20 September 2018 – website 9.10.2018

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 35 – Budget request and limits

1. Not later than 5 days after the approval of the Document on Basic Data and Directions of the country by the Government of Georgia, the Ministry of Finance of Georgia shall ensure the provision of budget request application forms to spending institutions through the electronic budget management system, and spending institutions shall use the above form to electronically submit information on budgets for future years to the Ministry of Finance of Georgia.

2. The information submitted by spending institutions to the Ministry of Finance of Georgia on budgets for future years shall comply with the staffing and limits of appropriations determined for spending institutions by the Document on Basic Data and Directions of the country.

3. A budget request application shall be submitted to the Ministry of Finance of Georgia in accordance with the procedure provided for by paragraph 1 of this article by legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.a) and (b².a) of this Code, which are not state budget spending institutions or budgetary organisations subject to their control.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 36 – Submission of budget request applications

1. Spending institutions shall submit budget request applications through the electronic budget management system of the Ministry of Finance of Georgia not later than September 1. The budget request application shall contain at least the following information:

(a) for the past, current and projected budget years:

(a.a) the calculation of appropriations provided for spending institutions according to the lowest category of budget classification (except for programme classification);

(a.b) the calculation of appropriations provided for spending institutions according to programme classification;

(a.c) the approved and projected number of employees for spending institutions;

(a.d) information on projects financed by donors and appropriations provided for co-financing and participation in these projects;

(a.e) information on changes in revenues, payables and balances received by a legal entity under public law/non-entrepreneurial (non-commercial) legal entity from any source permitted by the legislation of Georgia, as provided for by Article 6(b¹a) and (b²a) of this Code, according to the lowest category of budget classification (except for programme classification), as well as information on the approved number of employees and projected number of employees;

(b) programmes and subprogrammes to be implemented from the appropriations provided for the spending institution for the projected budget year and for the three budget years following the projected one, their financing, description, goals, expected results and indicators for assessing their implementation;

(c) information on investment/capital projects, in accordance with the methodology provided for by Article 9(4) of this Code.

1¹. The information provided for by paragraph 1(a.e) of this article shall be submitted by legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 35(3) of this Code within the period determined by this Code for the submission of a budget request application.

2. The submission of a budget request application by a spending institution above the limits provided for by Article 34(5)(c.d) and (d) of this Code (if any) shall be permitted only in the electronic form of the budget request application available in the electronic budget management system.

3. If the information reflected in the budget request application differs from the information provided for by Article 34(5)(c.b), (c.d) and (d) of this Code, the spending institution shall submit information about the reasons for this difference to the Ministry of Finance of Georgia through the electronic budget management system, along with the budget request application.

4. The Ministry of Finance of Georgia shall ensure that the appropriations determined for payments of state significance are reflected in the Draft State Budget.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 37 – Preparing Draft State Budget

1. The Ministry of Finance of Georgia shall review budget request applications and submit the main parameters of the Draft State Budget to the Government of Georgia for consideration not later than September 15.

2. The Ministry of Finance of Georgia shall submit the Draft State Budget and an updated document on Basic Data and Directions of the country to the Government of Georgia not later than September 25.

3. If an agreement is not achieved between the Ministry of Finance of Georgia and the spending institution during the implementation of the measures provided for by paragraphs 1 and 2 of this article, the Ministry of Finance of Georgia shall be authorised to submit its own version of the Draft State Budget to the Government of Georgia, on which the Government of Georgia shall make the final decision.

4. ( Deleted – 28.10.2011, No 5172 ).

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

 

Article 38 – Submission of the Draft State Budget and document on Basic Data and Directions of the country to the Parliament of Georgia

1. The Government of Georgia shall submit the Draft State Budget to the Parliament of Georgia not later than October 1, together with the attached materials.

2. Along with the Draft State Budget, a document on Basic Data and Directions of the country corresponding to the draft budget shall be submitted to the Parliament of Georgia for consideration.

3. The Draft State Budget shall include at least the following information:

(a) the balance of the State Budget according to the budget classification;

(b) State Budget revenues, changes in the balance and the volume of appropriations determined for each spending institution according to the following articles of the budget classification:

(b.a) expenditures, including appropriations allocated for the purpose of remuneration of labour;

(b.b) increase in non-financial assets;

(b.c) increase in financial assets;

(b.d) decrease in liabilities;

(c) the volume of appropriations determined for spending institutions according to the functional classification of expenditures and operations on non-financial assets;

(d) the volume of the State Budget surplus or deficit;

(d¹) basic fiscal indicators projected within the framework of fiscal procedures defined by the Organic Law of Georgia On Economic Freedom;  

(e) the volume of State Budget appropriations according to the programme classification;

(f) the volume of payables of state significance;  

(g) the limits of state debt and state-backed loans;

(h) projects financed by targeted credits and grants allocated by donors;

(i) priorities within which spending institutions implement programmes/subprogrammes with State Budget financing, their description and objectives;

(j) the percentage values of the shares of each municipality in the total amount of value added tax allocated to municipalities.  

4. The Draft State Budget shall be accompanied by: 

(a) the Draft State Budget explanatory note;

(a.a) forecasts of basic macroeconomic indicators (nominal and real gross domestic product, economic growth, inflation, investments, etc.) and their description;

(a.b) fiscal indicator forecasts and their description;

(a.c) information on the main activities and programmes financed by the State Budget;

(b) a brief overview of the implementation of the State Budget of the current year;

(c) the package of legislative amendments necessary for the enactment of the annual budget law;

(d) additional information on the programmes/subprogrammes determined by the budget, their expected results and performance assessment indicators;

(e) information on the revenues received from any source permitted by the legislation of Georgia, payables and changes in the balance by a legal entity under public law/non-entrepreneurial (non-commercial) legal entity provided for by Article 6(b¹.a) and (b².a) of this Code;

(e1) information on changes in revenues, payables and balances received from any source permitted by the legislation of Georgia by state enterprises belonging to the governmental sector provided for by Article 6(b³.a) of this Code;

(f) information on fiscal risks;

(g) information on investment/capital projects selected and evaluated in accordance with the criteria determined by the methodology provided for by Article 9(4) of this Code, the allocations for the start of which are provided for by the budget of a projected year and/or in the fiscal indicators of the three years following the projected one. The aforementioned information shall include the description of an investment/capital project, its cost, implementation deadlines and expected results;

(h) information on tax expenditures.

5. Information provided for by paragraph 3 of this article, except for the information provided for by point (i) of the same paragraph, shall be submitted for the past, current and projected budget years.

6. The information provided for by point (i) of paragraph 3 of this article shall be submitted for the projected budget year and for the three budget years following the projected budget year.

7. The Draft State Budget with the attached materials and the document on Basic Data and Directions of the country shall be made available to the public immediately after its submission to the Parliament of Georgia.

8. The attached materials to the Draft State Budget, except for those provided for by point (c) of paragraph 4 of this article, shall be for informational purposes only and shall not be approved by the Parliament of Georgia.

9. The budgets of legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.a) and (b².a) of this Code shall be approved in accordance with the procedure established by the legislation of Georgia.

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 29, 22.6.2010, Art. 189

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 5526 of 20 December 2011 – website, 21.12.2011

Law of Georgia No 1599 of 20 November  2013 – website, 3.12.2013  

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 39 – Discussion and approval of the Draft State Budget

1. The Draft State Budget submitted to the Parliament of Georgia, together with the attached materials and the document on Basic Data and Directions of the country, shall be considered by the committees and factions of the Parliament of Georgia. The opinions of the committees shall be sent to the Finance and Budget Committee of the Parliament of Georgia.

2. During committee discussions, the main parameters of the Draft State Budget shall be presented by the Minister of Finance of Georgia or his/her deputy, while the relevant Minister or his/her deputy, together with the Minister of Finance of Georgia or his/her deputy, shall present information on the programmes and subprogrammes to be implemented within the framework of the appropriations provided for ministries in the Draft State Budget and their financing.

3. The Parliament of Georgia shall send the opinion of the Finance and Budget Committee of the Parliament of Georgia to the Government of Georgia not later than October 22. Remarks expressed on the document on Basic Data and Directions of the country for the next three budget years shall be of a recommendatory nature.

4. The Government of Georgia shall resubmit the revised versions of the Draft State Budget and the document on Basic Data and Directions of the country, together with information on the status of the consideration of the expressed remarks and proposals, to the Parliament of Georgia not later than November 5. The Draft State Budget shall be considered at a plenary session.

5. The draft annual budget law and a report on a brief overview of the State Budget of the the current year shall be presented at a plenary session by the Prime Minister of Georgia or any member of the Government of Georgia, upon the instruction of the Prime Minister by a relevant act. The Parliament of Georgia shall also hear the reports of the State Audit Office, the National Bank of Georgia, and the Finance and Budget Committee of the Parliament of Georgia.

6. The opinion of the Finance and Budget Committee of the Parliament of Georgia, together with a transcript of the remarks made during the discussion at the plenary session of the Parliament of Georgia, shall be sent to the Government of Georgia not later than November 20.

7. The Government of Georgia shall submit the final version of the Draft State Budget and the revised version of the document on Basic Data and Directions of the country, together with information on the status of consideration of the remarks and proposals made at the plenary session, to the Parliament of Georgia not later than November 30.

8. The Parliament of Georgia shall vote on the Draft State Budget law not later than the third Friday of December. The State Budget law shall be adopted by a majority of the total number of the members of the Parliament of Georgia, by one hearing.

9. The Draft State Budget adopted by the Parliament of Georgia shall include at least the information provided for by Article 38(3)(a)-(g) of this Code.

10. Amendments to the Draft State Budget may be made by the Parliament of Georgia with the consent of the Government of Georgia. In such case, the Government of Georgia shall submit to the Parliament of Georgia an amended draft law. Amendments to the Draft State Budget may also be made during its consideration at a plenary session of the Parliament if a rapporteur agrees with remarks made.

11. If the Parliament of Georgia fails to adopt the draft law on the State Budget by the third Friday of December, the same version of the Draft State Budget or a draft revised by the Government of Georgia and Conciliation Commission of the Parliament of Georgia may be put to a vote again within 10 days, but not later than December 31.

12. In case of non-approval of the State Budget, the expenses shall be covered according to the approved State Budget of the previous year, in accordance with Article 13 of this Code.

13. Not later than 1 month after the beginning of the projected budget year, the Ministry of Finance of Georgia shall, based on information received from municipalities and autonomous republics, ensure the preparation of the final version of the document on Basic Data and Directions of the country and submit it to the Finance and Budget Committee of the Parliament of Georgia as an information.

14. The annual budget law shall be published in accordance with the procedure established by the legislation of Georgia.

Article 40 – Making changes and/or amendments to an annual budget law

1. Amendments and/or changes to the appropriations provided for by the annual budget, in addition to the procedure established by Article 31 of this Code, shall require amendments to the annual budget law. Amendments to the annual budget law shall be made in accordance with the procedure established by this article, unless otherwise provided for by Article 40¹ of this Code.

2. Materials attached to the draft law on amendments and/or changes to the annual budget law shall contain updated medium-term macroeconomic and fiscal forecasts and information reflecting the text of amendments and/or changes, except for cases where their submission is not required due to the content of the amendments and/or additions.

3. Within 10 days after the Government of Georgia submits the draft law on introducing amendments to the Law on the State Budget to the Parliament of Georgia, the Parliament of Georgia shall send the opinion provided for by the Rules of Procedure of the Parliament of Georgia related to the draft law to the Government of Georgia.

4. The Government of Georgia shall submit the revised version of the draft law on amendments and/or changes to the Law on the State Budget to the Parliament of Georgia for consideration not later than 5 days after its receipt. The draft shall be accompanied by information on the status of consideration of the comments and proposals expressed.

5. The Parliament of Georgia shall consider the draft law on amendments to the Law on the State Budget at a plenary session not later than 7 days after the Government of Georgia submits the revised version of the draft.

6. The Prime Minister of Georgia or a person designated by the relevant act of the Prime Minister shall submit a draft law on amendments to the annual budget law in the plenary session. The Parliament of Georgia shall also hear the reports of the State Audit Office, the National Bank of Georgia, and the Finance and Budget Committee of the Parliament of Georgia.

7. The Parliament of Georgia shall adopt the law on the introduction of amendments to the draft Law on the State Budget by one hearing, by the majority of the full composition of the Parliament.

8. If the Parliament of Georgia fails to adopt the draft law on amendments and/or changes to the Law on the State Budget, either the same version of the draft law on amendments and/or changes to the Law on the State Budget may be put to the vote repeatedly or the draft revised by the Government of Georgia and the Conciliation Commission of the Parliament of Georgia.

9. The law on the introduction of amendments and/or changes to the Law on the State Budget shall be promulgated in accordance with the procedure established by the legislation of Georgia.

Law of Georgia No 6550 of 22 June 2012 – website, 29.6.2012

Law of Georgia No 3381 of 5 September 2018 – website 24.9.2018

Law of Georgia No 3880 of 6 December 2018 – website, 14.12.2018

Law of Georgia No 5670 of 20 December 2019 – website, 31.12.2019

 

Article 40¹ – Making amendments to the Law on the State Budget regarding the issuance of a guarantee/financing of a resolution process provided for by the Organic Law of Georgia On the National Bank of Georgia

1. The Government of Georgia shall submit a draft law on amendments to the Law on the State Budget regarding the issuance of a guarantee/financing of a resolution process provided for by the Organic Law of Georgia On the National Bank of Georgia to the Parliament of Georgia for consideration. The submitted draft law shall be considered by the Finance and Budget Committee of the Parliament of Georgia not later than 2 days after its receipt.

2. The Parliament of Georgia shall consider the draft law on amendments to the Law on the State Budget regarding the issuance of a guarantee/financing of a resolution process provided for by the Organic Law of Georgia On the National Bank of Georgia at a plenary session not later than 5 days after the Government of Georgia submits the draft law to the Parliament of Georgia.

3. The Prime Minister of Georgia or a person designated by the relevant act of the Prime Minister shall submit the draft law on amendments to the annual budget law regarding the issuance of a guarantee/financing of a resolution process provided for by the Organic Law of Georgia On the National Bank of Georgia at a plenary session of the Parliament of Georgia. The Parliament of Georgia shall also hear reports of the National Bank of Georgia and the Finance and Budget Committee of the Parliament of Georgia.

Law of Georgia No 5670 of 20 December 2019 – website, 31.12.2019

 

Chapter VI – Procedure for Special Funding from the State Budget

 

Article 41 – The Parliament of Georgia and the State Audit Office

1. The Parliament of Georgia shall submit to the Government of Georgia the draft budgets of the Parliament of Georgia and the State Audit Office not later than June 15.

2. The procedure for forming the draft budgets of the Parliament of Georgia and the State Audit Office shall be determined by the Rules of Procedure of the Parliament of Georgia.

3. A reduction in the total volume of appropriations provided for by the articles of the economic classification of expenditures in the State Budget for the Parliament of Georgia and the State Audit Office compared to the corresponding volume determined by the approved budgets of previous and current years shall be possible only with the prior consent of the Parliament of Georgia and the State Audit Office.

4. In agreement with the Ministry of Finance of Georgia, the Parliament of Georgia may use the right established by Article 31 of this Code to distribute the appropriations allocated to it without restriction.

Law of Georgia No 6550 of 22 June 2012 – website, 29.6.2012

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 42 – Constitutional and common courts of Georgia

A reduction in the total volume of appropriations provided for by the articles of the economic classification of expenditures in the State Budget for the constitutional and common courts of Georgia compared to the volume determined by the approved budget of the previous year shall be possible only with the prior consent of the Constitutional Court of Georgia and the High Council of Justice of Georgia.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 43 – Prosecutor’s Office of Georgia

A reduction in the allocations in the State Budget for the Prosecutor’s Office of Georgia compared to the amount determined by the approved budget of the previous year shall be possible only with the prior consent of the Prosecutor General of Georgia.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 3809 of 30 November 2018 – website, 13.12.2018

 

Article 44 –Legal Aid Service

A reduction in the total volume of appropriations provided for by the articles of the economic classification of expenditures for the Legal Aid Service compared to the volume determined by the approved budget of the previous year shall be possible only with the consent of the Legal Aid Council.

Law of Georgia No 4108 of 17 December 2010 – LHG I, No 75, 27.12.2010, Art. 483

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 44¹ –Public Broadcaster

The budget of the Public Broadcaster for the projected budget year shall be financed from the State Budget in accordance with the Law of Georgia on Broadcasting.

Law of Georgia No 4026 of 15 December 2023 – website, 27.12.2023

 

Article 45 – Terms for determining the volume of special funding

The volume determined by the articles of the economic classification of expenditures provided for by Article 41(3), Articles 42 and 44 of this Code shall not provide for the costs of projects financed by donors and the costs provided for in the same articles of the economic classification of expenditures for co-financing and co-participation in those projects.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 45¹ – Education funding  

1. It shall be mandatory to prepare and approve the Draft State Budget in such a way that, according to the functional classification of the consolidated budget of Georgia, the volume of education funding is not less than 6% of the projected nominal gross domestic product for the projected year.

2. Education funding in a volume less than that determined by paragraph 1 of this article may be planned only in cases provided for by Article 2(7) of the Organic Law of Georgia On Economic Freedom.

3. The restoration of education funding in the volume determined by paragraph 1 of this article shall be mandatory from the year following the achievement of parameters determined by Article 2(1) of the Organic Law of Georgia On Economic Freedom .

Law of Georgia No 4862 of 27 June 2019 – website, 4.7.2019

 

Article 45² – Ministry of Environmental Protection and Agriculture of Georgia

Within the framework of the appropriations of the Ministry of Environmental Protection and Agriculture of Georgia, the environmental programme for the projected budget year shall be financed by not less than the amount of funds received in the State Budget in the previous budget year in cases provided for by the Law of Georgia on Environmental Responsibility.

 

Chapter VII – Execution of the State Budget

 

Article 46 – Responsibility for the execution of the State Budget

1. Budgetary organisations shall be responsible for making payments in accordance with appropriations and mobilising revenues within their competence.

2. The Minister of Finance of Georgia shall supervise the organisation and management of the execution of the State Budget.

3. The Parliament of Georgia shall be authorised to control the lawfulness of spending the funds of the State Budget by the Government of Georgia through the State Audit Office.

Law of Georgia No 1599 of 20 November  2013 – website, 3.12.2013  

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 47 – The State Budget breakdown

1. Spending institutions shall submit information to the Ministry of Finance of Georgia on the quarterly and/or monthly indicative breakdown of the appropriations allocated to them by the State Budget within 5 working days from the publication of the Law on the State Budget.

2. The Ministry of Finance of Georgia shall review the submitted information and, taking into account the available resources, shall make a decision on the quarterly and/or monthly breakdown of the State Budget and consolidated budget (in the section on taxes) not later than 15 days from the publication of the Law on the State Budget.

3. During the quarterly and/or monthly breakdown of the State Budget, a free balance may be used to finance the appropriations, provided that the annual amount of the change in the balance provided for by the annual budget remains unchanged.

4. Amendments and/or changes to the annual budget law shall require the approval of a new breakdown or amendments to an existing one.

5. When submitting the information provided for by paragraph 1 of this article, spending institutions shall also submit information through the electronic budget management system on their budgets and the budgets of legal entities under public law and non-entrepreneurial (non-commercial) legal entities subject to their control provided for by Article 6(b¹.a) and (b².a) of this Code, on other revenues permitted by the legislation of Georgia (except for budget revenues) and payments to be made from these sources of revenues, which shall correspond to the information provided for by Article 38(4)(e) of this Code submitted to the Parliament of Georgia within the period provided for by Article 39(7) of this Code.

6. The information provided for by paragraph 1 of this article shall also be submitted within the period provided for by this article by legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.a) and (b².a) of this Code, which are not spending institutions of the State Budget or budgetary organisations subject to their control.

7. The budget breakdown of a legal entity under public law/non-entrepreneurial (non-commercial) legal entity provided for by this article shall be adjusted in accordance with the established procedure, for the purpose of its compliance with the approved budget of the legal entity under public law/non-entrepreneurial (non-commercial) legal entity and for the purpose of its further clarification.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

 

Article 48 – (Deleted)

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Article 48¹ - (Deleted)

Law of Georgia No 6168 of 8 May 2012 – website, 25.5.2012

Law of Georgia No 6572 of 28 June 2012 – website, 10.7.2012

 

Article 49 – (Deleted)

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 29, 22.6.2010, Art. 189

Law of Georgia No 3265 of 29 June 2010 – LHG I, No 31, 27.6.2010, Art. 198

Law of Georgia No 5351 of 25 November 2011 – website, 25.11.2011

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 49¹ - (Deleted)

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 29, 22.6.2010, Art. 189

Law of Georgia No 3265 of 29 June 2010 – LHG I, No 31, 27.6.2010, Art. 198

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 5351 of 25 November 2011 – website, 25.11.2011

 

Article 50 – (Deleted)

Law of Georgia No 3806 of 12 November 2010 – LHG I, No 66, 3.12.2010, Art. 414

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 51 – (Deleted)

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 52 – (Deleted)

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 29, 22.6.2010, Art. 189

Law of Georgia No 3439 of 13 July 2010 – LHG I, No 36, 13.7.2010, Article 218

Law of Georgia No 4210 of 22 February 2011 – website, 10.3.2011

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Chapter VIII – Accounting, Reporting and Audit of the State Budget

 

Article 53 – Accounting and Reporting of the State Budget

1. The State Treasury shall keep records of payments to finance the State Budget payables in accordance with the budget classification, which shall include information on all stages of payment. The State Treasury shall also keep a record of revenues provided for by the budget classification, and refunds of overpaid amounts.

2. The State Treasury shall prepare a statement within 20 days of the end of each month with the indication of revenues, payables, changes in the balance and the gross balance of the State Budget and submit it to the Parliament of Georgia.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 54 – A quarterly consideration of the execution of the State Budget

Within one month after the end of each quarter, the Ministry of Finance of Georgia shall submit to the Parliament of Georgia a quarterly review of the execution of the State Budget with a cumulative sum, which shall include:

(a) current developments in the macroeconomic and budgetary fields;

(b) the comparison of the actual volumes of revenues, payables (including payables of state significance), changes in the balance and gross balance with the projected indicators for the relevant period.

 

Article 55 – Preparation and submission of an annual report and a statement on the execution of the State Budget

1. Spending institutions and legal entities provided for by Article 6(b¹.a), (b².a) and (b³.a) of this Code shall, in accordance with the instructions approved by the Minister of Finance of Georgia, prepare final reports and statements within the established deadlines, which shall be sent to the Ministry of Finance of Georgia. The Ministry of Finance of Georgia shall, on the basis of the data of the State Treasury and information received from spending institutions and other relevant budgetary organisations, prepare an annual report on the execution of the State Budget, which shall be submitted to the Government of Georgia. The Government of Georgia shall submit it to the State Audit Office within 3 months after the end of a budget year.

2. The Government of Georgia shall submit an annual report on the execution of the State Budget to the Parliament of Georgia immediately upon the receipt of information on the completion of a report on that annual report by the State Audit Office, but not later than 5 months after the end of a budget year.

Law of Georgia No 1599 of 20 November  2013 – website, 3.12.2013

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014  

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 56 – Annual report on the execution of the State Budget

1. The annual report on the execution of the State Budget shall include at least the following information on the execution of an annual budget:

(a) the balance of the State Budget according to the budget classification;

(b) macroeconomic overview;

(c) the comparison of budget revenues and payables according to budget classification with projected indicators for the relevant period;

(d) balances on the accounts of the unified treasury account system at the beginning and the end of the year;

(e) the explanation of a discrepancy between approved and adjusted allocations according to the programmes of spending institutions if such discrepancy exceeds 30%;

(f) the explanation of a discrepancy between adjusted allocations according to the programmes of spending institutions and the amounts paid if such discrepancy exceeds 15%;

(g) information on the status of the execution of payments of state significance (including on outstanding state debts at the end of the budget year);  

(h) the description of programmes/subprogrammes implemented by spending institutions within the framework of priorities set by the annual budget and the achieved results;

(i) the annual indicators of the execution of the budgets of legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.a) and (b².a) of this Code;

(i¹) the cash execution indicators of the budgets of state enterprises belonging to the governmental sector provided for by Article 6(b³.a) of this Code;

(j) tax revenues received by a municipality;

(k) information on the execution of key fiscal indicators within the limits of fiscal rules determined by the Organic Law of Georgia On Economic Freedom.  

2. The information provided for by paragraph 1 of this article shall reflect data on funds received by ministries and agencies in the form of monetary grants/targeted financing during a year, and the record keeping/spending thereof shall be carried out during a budget year in accordance with the procedure approved by the Minister of Finance of Georgia .

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 29, 22.6.2010, Art. 189

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 57 – Auditing an annual report on the execution of the State Budget by the State Audit Office

 The State Audit Office shall, within 50 days from the date of the submission of an annual report on the execution of the State Budget by the Government of Georgia, notify the Government of Georgia of the completion of the report on that annual report and submit its report on an annual report on the execution of the State Budget to the Parliament of Georgia.

Law of Georgia No 6550 of 22 June 2012 – website, 29.6.2012

Law of Georgia No 1599 of 20 November  2013 – website, 3.12.2013  

Law of Georgia No 3880 of 6 December 2018 – website, 14.12.2018

 

Article 58 – Approval of an annual report on the execution of the State Budget

After reviewing an annual report on the execution of the State Budget and hearing the report of the State Audit Office on that annual report, the Parliament of Georgia shall, before the end of the spring session, adopt a resolution on the approval or non-approval of the annual report on the execution of the State Budget.

Law of Georgia No 6550 of 22 June 2012 – website, 29.6.2012

Law of Georgia No 1599 of 20 November  2013 – website, 3.12.2013  

 

Chapter IX – Granting Loans from the State Budget

 

Article 59 – Grounds for granting loans

1. The granting of a loan from the State Budget and its control shall be carried out in accordance with the conditions and procedures established by this Chapter. Relations related to the granting of a loan, control of the targeted use of a loan and the repayment of a loan shall be regulated by this Code and a normative act of the Government of Georgia.

2. The norms of this Chapter shall not apply to:

(a) loans granted within the framework of projects financed by foreign donors;

(b) loans granted from the State Budget to the republican budget of an autonomous republic or municipal budget;

(c) loans granted before the entry into force of this Code, except for the cases provided for by the same Code;

(d) loans granted within the framework of temporary state financing in accordance with the Organic Law of Georgia On the National Bank of Georgia, and the procedure for granting thereof shall be determined by a joint legal act of the Ministry of Finance of Georgia and the National Bank of Georgia.

3. A loan from the State Budget shall be granted only on the basis of a decree of the Government of Georgia, which shall specify:

(a) the purpose of a loan;

(b) the source of a loan (the reserve fund of the Government of Georgia provided for by the State Budget, the appropriation of a budgetary institution and/or other);

(c) the means of securing a loan request provided for by this Code and/or an exceptional case;

(d) a lender, a loan allocator, a recipient of a loan, a controller and other parties to the loan agreement;

(e) the amount of a loan;

(f) the annual interest rate for the use of a loan;

(g) the terms of the use of a loan and the repayment of a loan.

4. The decree may also specify other conditions necessary for the granting and repayment of a loan, for its targeted and effective use.

Law of Georgia No 3265 of 29 June 2010 – LHG I, No 31, 27.6.2010, Art. 198

Law of Georgia No 1599 of 20 November  2013 – website, 3.12.2013

Law of Georgia No 5670 of 20 December 2019 – website, 31.12.2019

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 60 – A lender and a recipient of a loan

1. A lender from the State Budget shall be a budgetary organisation from whose appropriations a loan is granted and/or to which the loan resources (amounts) to be granted are allocated from the funds provided for by the State Budget and/or from other sources in accordance with the procedure established by the legislation of Georgia.

2. The recipient of a loan may be an enterprise or organisation defined by the Tax Code of Georgia or an entrepreneurial entity of any legal form defined by the Law of Georgia On Entrepreneurs or an individual.

 

Article 61 – Means of securing a loan request

1. In order to secure loan obligations, the recipient of a loan shall present one of the means of securing the loan request provided for by paragraph 2 of this article.

2. Means of securing a loan request shall be:

(a) a bank guarantee, by which, in the event of the failure of the recipient of a loan to fulfil obligations, the bank issuing a guarantee undertakes a written obligation to transfer a sum of money to the State Budget to cover the overdue loan debt of the recipient of a loan immediately upon the written request of a lender;

(b) an insurance certificate (policy) of an insurance organisation, by which the insurance organisation issuing the policy undertakes a written obligation to transfer a sum of money to the State Budget to cover the overdue loan debt of the recipient of a loan upon the occurrence of an insured event, immediately upon the written request of a lender;

(c) pledging and/or mortgaging own or a third party property in favour of a lender.

3. A lender shall choose the means of securing a loan request in each specific case, taking into account existing circumstances.

4. In the event of an overdue loan debt, a lender shall be entitled to use the means of securing a loan request to cover the overdue loan debt in accordance with the rules and conditions established by the legislation of Georgia.

5. A loan agreement shall provide for an additional means of securing a loan request, according to which the recipient of a loan shall be liable for a personal penalty for failure to fulfil and/or inappropriate fulfilment of loan obligations.

 

Article 62 – Control over the targeted use of a loan

1. A lender shall exercise control over the targeted use of a loan, unless another administrative body is designated by a decree to do so.

2. In the event of the misuse of a loan, the recipient of a loan shall be obliged to stop the misuse of a loan, correct the violated conditions within a reasonable period of time, and use the corresponding amount of the misused loan from own funds for the purposes provided for by the loan agreement.

3. If the recipient of a loan fails to fulfil obligations provided for by paragraph 2 of this article, the recipient of a loan shall be obliged to return the misused loan (tranche) within 30 calendar days of receiving a written warning and pay the accrued interest, fines and penalties, the accrual of which shall continue until the fulfilment of relevant obligations.

 

Article 63 – Failure of the recipient of a loan to fulfil the obligation, means and conditions for the repayment of overdue loan debt

1. Upon the occurrence of an overdue loan debt, a lender shall have the right to use the powers granted by the loan agreement, this Code and the legislation of Georgia, towards the recipient of a loan, to ensure repayment of the overdue loan debt.

2. The following may be used as the means of the repayment of an overdue loan debt: securing the loan request, compulsory enforcement against the recipient of a loan in accordance with the Law of Georgia on Enforcement Proceedings and/or other measures provided for by the legislation of Georgia.

3. In order to ensure the repayment of an overdue loan debt, a lender shall be obliged to apply in writing to the Ministry of Finance of Georgia not later than 6 months from the origin of an overdue loan debt. The written notification of a lender shall be based on the existence of an overdue loan debt, shall determine the amount of an overdue loan debt, the grounds for its origin, and shall contain appropriate justification.

4. Grounds for using the means of the repayment of an overdue loan debt shall an individual administrative act of the Minister of Finance of Georgia, issued on the basis of the written notification of a lender, in compliance with the requirements of the General Administrative Code of Georgia, and on the basis of formal administrative proceedings.

5. The Minister of Finance of Georgia shall review the written notification of a lender on the use of means to repay overdue loans not later than 6 months after its registration with the Ministry of Finance of Georgia and, based on state interests, shall make a decision on the use or non-use of means to repay overdue loans. Loans granted to legal entities under public law, enterprises (more than 50% of whose shares or stakes are owned by a state body or municipality/municipalities) and legal persons/individuals participating in state programmes shall be considered to be state interests. After the expiration of that period, the request of a lender for the use of means to repay overdue loans shall be considered unsatisfied.

6. On the basis of an individual administrative act of the Minister of Finance of Georgia on the use of means to repay an overdue loan debt, the writ of execution shall be issued, which shall be enforced in accordance with the procedure established by the Law of Georgia on Enforcement Proceedings .

7. An individual administrative act of the Minister of Finance of Georgia on the use of means of the repayment of an overdue loan debt may be appealed in court in accordance with the procedure established by the legislation of Georgia. Appealing the act shall not result in the suspension of its execution, as well as the actions taken in the execution process.

Law of Georgia No 3265 of 29 June 2010 – LHG I, No 31, 27.6.2010, Art. 198

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

Article 64 – Register of loans granted from the State Budget

1. Data on loans granted from the State Budget shall be reflected in the register maintained by a lender. A lender shall submit to the Ministry of Finance of Georgia:

(a) information reflected in the register – once a month (as of the first day of the month);

(b) copies of the loan agreement, the schedule of the loan and the repayment of the interest accrued on it, as well as any changes made to them.

1¹. The Ministry of Finance of Georgia shall establish a unified register of loans granted from the State Budget.

2. The procedure for keeping the register of loans granted from the State Budget and the form of the register shall be approved by the Minister of Finance of Georgia.

Law of Georgia No 3265 of 29 June 2010 – LHG I, No 31, 27.6.2010, Art. 198

 

Title IV – Municipal Budget

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Chapter X – General Norms for municipal budget

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 65 – Independence of a municipal budget

1. Each municipality shall have its own independent budget.

2. The budget of a municipality shall be independent of the budgets of other municipalities, the State Budget, and the republican budgets of autonomous republics.

3. The independence of municipal bodies in budgetary activities shall be guaranteed by their own revenues and the independent determination of payments for the exercise of their own powers provided for by this Code, as well as by the right to make independent decisions within the framework of delegated powers within the limits established by law.

4. The central authority and authorities of the autonomous republics of Georgia shall not have the right to interfere in the budgetary powers of municipal bodies.

Article 66 – Own and non-own revenues of a municipal budget

1. Own revenues of a municipal budget shall include local taxes and fees, value added tax received by a municipality, and other revenues designated for municipalities by the legislation of Georgia.

2. Non-own revenues of a municipal budget shall include special, targeted, and capital transfers, and other revenues provided for by the legislation of Georgia.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 67 – Reserve fund of a municipal budget

1. A reserve fund shall be established in a municipal budget to finance unforeseen payables, the volume of which shall not exceed 2% of the total volume of appropriations provided for by an annual budget.

2. A financial body shall allocate funds from the reserve fund on the basis of a decision of a mayor, which shall include information on the amount and purpose of the funds.

Law of Georgia No 1267 of 26 July 2017 – website, 29.7.2017

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 68 – Fund for the Repayment of the Debts of Previous Years and for the Enforcement of Court Decisions

1. A fund for the repayment of debts of previous years and for the enforcement of court decisions shall be established in the municipal budget, the management of which shall be carried out in accordance with the procedure established by the legislation of Georgia and in accordance with a decision adopted by the executive body of a municipality.

2. The amount of the fund for the repayment of debts of previous years and for the enforcement of court decisions shall be determined by an annual budget.

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 69 – Allocation of municipal budget appropriations and changes in programme classification

1. The allocation of appropriations from one priority to another, except for appropriations allocated in accordance with Articles 67 and 68 of this Code, may only be made by amending the approved annual budget.

2. Within the framework of one priority, it shall be possible to allocate funds between programmes, subprogrammes and budget classification articles.

3. Within the framework of one priority, the allocation of funds between programmes shall not exceed 5% of the payables approved by an annual budget for that priority, except for appropriations allocated in accordance with Articles 67 and 68 of this Code.

4. Based on the relevant legal act and proposals submitted by a budgetary organisation, the executive body of a municipality shall be authorised to make changes (add a programme/subprogramme, change the name of a programme/subprogramme) in the programme classification.

5. Based on the relevant legal act, the executive body of a municipality shall be authorised to make changes (including adding a programme code or programme) to revenues and payables provided for by a budget in order to reflect the funds allocated from payables of state significance provided for by the State Budget. Those changes shall be submitted to the representative body of a municipality within 1 month, but not later than the end of a budget year.

6. An annual budget shall be adjusted with the allocations allocated in accordance with Articles 67 and 68 of this Code and the amendments provided for by paragraphs 2-5 of this article shall be implemented in accordance with the procedures established by the representative body of a municipality – the Sakrebulo.

7. The budgets of legal entities under public law/non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.c) and (b².c) of this Code shall be adjusted in accordance with the procedures established by the representative body of a municipality – the Sakrebulo.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Article 70 – Emergency budget

1. In the event of the state of emergency being declared throughout the territory of Georgia or in a separate municipality, the representative body of a municipality – the Sakrebulo, may approve an emergency budget submitted by the relevant executive body for targeted financing of measures related to the state of emergency.

2. During the operation of the emergency budget, the percentage restrictions established by Articles 67 and 69 of this Code shall be suspended.

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020 ~

 

Chapter XI – Distribution of Value Added Tax Belonging to Municipalities

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

 

 Article 72 – (Deleted)

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018  

 

Article 73 – (Deleted)  

Law of Georgia No 98 of 16 December 2016 – website, 23.12.2016

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

 

Article 74 – (Deleted)  

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

 

 Chapter XII – Preparation, Submission and Approval of Draft Municipal Budget

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 75 – Coordination of the process of the preparation and submission of the draft municipal budget

1. The process of preparing and submitting a draft municipal budget shall be coordinated by the financial body of a municipality.

2. For the purposes of preparing, submitting and approving a draft municipal budget, the Ministry of Finance of Georgia shall provide municipalities with relevant methodological instructions.

3. If requested by the Ministry of Finance of Georgia, a municipality shall be obliged to submit information on the municipal budget in a timely and complete manner.

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 76 – Document of priorities of municipalities

1. The document of the priorities of a municipality shall be a basic plan for the development of administrative units, and reflect information about medium-term action plans.

2. The document of the priorities of a municipality shall be established by the executive body of a municipality in consultation with the administration of a relevant state representative.

3. In order to develop the document of the priorities of a municipality, the executive body of a municipality shall start preparations from March 1 of each year; for that purpose it shall issue the relevant administrative act, which shall determine the list of information to be submitted for the preparation of priorities and the deadlines for submission.

4. The document of the priorities of a municipality shall include at least the following information:

(a) aggregated indicators of the revenues and expenditures of the municipal budget, operations with financial and non-financial assets and liabilities for the past, current, projected budget years and for the three budget years following the projected one;

(b) the analysis of the final results of the implementation of a municipal budget for the past budget year and revised forecasts for the current budget year;

(c) for the planned budget year and for the three budget years following the projected one:

(c.a) the priorities of a municipality determined by the executive body of a municipality and the programmes/subprogrammes to be implemented within their framework;

(c.b) the medium-term priorities of a municipality and the amounts of financing of main programmes and measures to be implemented to achieve them, as well as goals and results thereof.

5. The executive body of a municipality (except for a municipality within an autonomous republic) shall submit the document of the priorities of a municipality to the representative body of a municipality and the Ministry of Finance of Georgia not later than November 15.

6. A municipality within an autonomous republic shall submit the document of the priorities to the financial body of an autonomous republic in accordance with the procedure established by the autonomous republic.

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Law of Georgia No 3461 of 20 September 2018 – website 9.10.2018

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

 

Article 77 – The preparation of a draft municipal budget, submission of a draft municipal budget and the document of priorities to the representative body of a municipality

1. The Ministry of Finance of Georgia shall inform the municipal bodies of the main budget parameters of the projected budget year by July 15 of the current year.

2. Taking into account the information received from the Ministry of Finance of Georgia, a financial body shall calculate the forecast indicators of revenues and payables and initiate relevant procedures for drawing up the draft municipal budget.

3. To prepare the draft municipal budget, the relevant financial body shall send budget application forms to budgetary organisations indicating the indicative maximum volume of appropriations and the number of employees.

4. The budget request application shall contain at least the following information:

(a) for the past, current and projected budget years:

(a.a) the calculation of appropriations provided for programmes/subprogrammes according to the lowest category of budget classification (except for programme classification);

(a.b) the calculation of appropriations according to the programme classification;

(a.c) the projected number of employees for a budget organisation;

(a.d) information on projects financed by donors and appropriations provided for co-financing and participation in these projects (if any);

(a.e) information on the revenues received from any source permitted by the legislation of Georgia, payables and changes in the balance by a legal entity under public law/non-entrepreneurial (non-commercial) legal entity provided for by Article 6(b¹.c) and (b².c) of this Code;

(b) programmes/subprogrammes to be implemented from the appropriations provided for by the budget for the projected budget year and for the three budget years following the projected one, their financing, description, goals, expected results and indicators for assessing their implementation;  

(c) information on investment/capital projects, in accordance with the methodology provided for by Article 9(4) of this Code.

5. A budget organisation may submit a budget request application in excess of the limits provided for by paragraph 3 of this article (if any) only in the form provided for by the budget request application.

6. The Ministry of Finance of Georgia shall, not later than October 5, notify municipal authorities of the forecast indicators of financial assistance and tax revenues to be transferred to the relevant budget from the Draft State Budget.

6¹. It shall be prohibited for a municipality to plan budget tax revenues in an amount exceeding the forecast indicators provided to it on the basis of paragraph 6 of this article.

6². The tax revenue plan projected on the basis of paragraph 6¹ of this article may be increased only in agreement with the Ministry of Finance of Georgia.

7. The mayor of the relevant municipality shall submit the draft municipal budget, together with the attached materials, to the representative body of a municipality – the Sakrebulo for consideration not later than November 15.

8. Along with the draft budget, the document of the priorities of the relevant municipality shall be submitted to the representative body of a municipality – the Sakrebulo.

8 ^{​ 1} . The draft budget shall be prepared by the financial body of a municipality through the electronic public finance management system.

9. The draft budget shall include at least the following information:

(a) the balance of the budget according to the budget classification;

(b) budget revenues, changes in the balance and the volume of appropriations determined for programmes/subprogrammes according to the following articles of the budget classification:

(b. a) expenditures, including appropriations allocated for the purpose of remuneration of labour;

(b. b) increase in non-financial assets;

(b.c) increase in financial assets;

(b.d) decrease in liabilities;

(c) the volume of appropriations determined by a budget according to the functional classification of expenditures and operations on non-financial assets;

(d) the volume of the budget surplus or deficit;

(e) the volume of budget appropriations according to the programme classification;

(f) the volume of the reserve fund;

(g) projects financed by targeted credits and grants allocated by donors;

(h) priorities within which budgetary organisations implement programmes/subprogrammes with State Budget financing, their description and objectives.

10. Materials attached to the draft budget shall include:

(a) an explanatory note to the draft budget;

(b) a brief overview of the implementation of the budget of the current year;

(c) information on the revenues received from any source permitted by the legislation of Georgia, payables and changes in the balance by a legal entity under public law/non-entrepreneurial (non-commercial) legal entity provided for by Article 6(b¹.c) and (b².c) of this Code;

(c¹) information on changes in revenues, payables and balances received from any source permitted by the legislation of Georgia by state enterprises belonging to the governmental sector provided for by Article 6(b3.c) of this Code;

(d) additional information on the programmes/subprogrammes determined by the budget, their expected results and performance assessment indicators;

(e) information on investment/capital projects selected and evaluated in accordance with the criteria determined by the methodology provided for by Article 9(4) of this Code, the allocations for the start of which are provided for by the budget of a projected year and/or in the fiscal indicators of the three years following the projected one. The aforementioned information shall include the description of an investment/capital project, its cost, implementation deadlines and expected results.

11. Information provided for by paragraph 9 of this article, except for the information provided for by point (h) of the same paragraph, shall be submitted for the past, current and projected budget years. 

12. The information provided for by point (h) of paragraph 9 of this article shall be submitted for the projected budget year and for the three budget years following the projected budget year.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Article 78 – Discussion and adoption of the draft municipal budget

1. The draft budget must be published for a public review within 5 days of its submission to the representative body of a municipality.

2. The representative body of a municipality shall publicly review the draft budget and, before the start of the new budget year, shall make a decision on the approval of the draft budget of a municipality. The decision on the approval of the draft budget shall be made by a majority of the members of the representative body on the list.

3. In case of any comments, the representative body of a municipality – the Sakrebulo – shall return the draft budget with comments to the mayor of a municipality not later than November 25.

4. The mayor of a municipality shall submit the same or amended version of the draft budget and the document of priorities to the representative body of a municipality – the Sakrebulo – not later than December 10.

5. When reviewing the draft budget by the representative body of the municipality, the Sakrebulo, amendments may be made only in agreement with the mayor of a municipality.

6. If the representative body of a municipality, the Sakrebulo, has not approved the revised version of the draft budget submitted by the mayor of a municipality or, in the case of non-acceptance of the comments of the Sakrebulo by the mayor, the original version of the budget is not approved, the Sakrebulo shall be authorised to approve, by three fifths of its members on the list, a draft budget initiated by a faction of the Sakrebulo or by at least one thirds of the members of the Sakrebulo on the list, which shall take into account only the comments sent to the mayor by the Sakrebulo or a part thereof, in accordance with paragraph 3 of this article.

7. In case of failure to approve the draft municipal budget within 3 months from the beginning of the new budget year, the Government of Georgia shall have the right to early terminate the powers of the representative body of a municipality – the Sakrebulo – in accordance with the procedure established by the Organic Law of Georgia Local Self-Government Code.

7¹. The decision taken by the representative body of a municipality – the Sakrebulo – on the approval of the draft municipal budget shall include the information provided for by Article 77(9) of this Code.

8. Not later than 20 days after the approval of the draft budget, a municipality (except for a municipality in an autonomous republic) shall send the Ministry of Finance of Georgia a document of the priorities of a municipality corresponding to the approved budget.

8¹. The budgets of legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.c) and (b².c) of this Code shall be approved in accordance with the procedure established by the legislation of Georgia.

9. The annual budget shall be published and made available to the public.

Article 79 – Taking into account a targeted transfer in the municipal budget

1. The Ministry of Finance of Georgia shall notify the municipal bodies of the forecast parameters of a targeted transfer by October 5 of each year.

2. On the basis of the legislative acts of Georgia and/or the agreement, the executive body of a municipality shall prepare, based on the parameters presented by the Ministry of Finance of Georgia, the calculations of the financing of programmes and measures of the delegated powers in the municipal budget, the volume of the targeted transfer and, together with the draft budget, shall submit them to the representative body of a municipality – the Sakrebulo, which shall review them and, taking into account the results of the review, prepare a draft agreement between the state and the municipal bodies (if necessary) on the powers delegated by the state.

3. Within 1 month of the publication of the Law on the State Budget, delegation agreements shall be concluded between the executive body of a municipality and the relevant state body (if necessary).

4. The rules for taking into account and using the targeted transfer from the republican budget of an autonomous republic to the budget of a municipality within the autonomous republic shall be determined by the representative body of an autonomous republic.

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 79¹ – Procedure for allocating special transfers

1. A special transfer shall be allocated to eliminate the consequences (damage) of natural calamities, of A special transfer shall be a financial assistance provided between the State Budget, republican budget of autonomous republics and municipal budgets. A municipality may allocate a transfer only if it serves the goals of the allocating

2. In the case provided for paragraph 1 of this article, the municipality shall be entitled to apply to the Government of Georgia/Ministry of Georgia and/or the Government of the Autonomous Republic of Georgia/Ministry of the Autonomous Republic of Georgia with a request for the allocation of a special transfer in the form of financial assistance. That application shall indicate the basis for the request for the allocation of a special transfer and the volume of the transfer.

3. A special transfer for the budget of an autonomous republic shall be allocated from the State Budget in accordance with the procedure determined by paragraph 2 of this article.

4. In the case provided for by paragraph 1 of this article, a proposal by a municipality for the allocation of a special transfer may be submitted to another municipality.

Article 80 – Making changes and/or amendments in a municipal budget

1. Amendments and/or changes to the appropriations provided for by a municipal budget, in addition to the procedure established by Article 69 of this Code, shall require amendments to the annual budget law.

 2. The representative body may make amendments and/or changes to a municipal budget only upon the proposal of a mayor.

Law of Georgia No 1267 of 26 July 2017 – website, 29.7.2017

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Chapter XIII – Execution of Municipal Budget

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 81 – General provision on the execution of a municipal budget

The executive body of a municipality shall ensure the execution of a municipal budget within the scope of its competence.

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 82 – Municipal budget breakdown

1. Not later than 15 days after the publication of a municipal budget, the relevant financial body shall prepare a quarterly and/or monthly breakdown of the municipal budget through the electronic public finance management system.

2. During the quarterly and/or monthly breakdown of the municipal budget, a free balance may be used to finance the appropriations, provided that the annual amount of the change in the balance provided for by the annual budget remains unchanged.

3. Within the period determined by paragraph 1 of this article, the financial body shall also prepare a quarterly and/or monthly breakdown of the budgets of legal entities under public law and non-profit (non-commercial) legal entities provided for by Article 6(b¹.c) and (b².c) of this Code, which shall correspond to the information submitted to the relevant Sakrebulo, provided for by Article 77(10)(c) of this Code.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 83 – Responsibility for the execution of the municipal budget

1. Budgetary organisations shall be responsible for making payments in accordance with appropriations and collecting revenues within their competence.

2. The collection of local taxes in the municipal budget shall be ensured by tax authorities in accordance with the procedure established by the legislation of Georgia, while the collection of funds receivable from other municipal revenues and operations carried out on non-financial assets shall be ensured by the authorised person of a relevant municipality, unless otherwise established by the legislation of Georgia.

3. ( Deleted – 12.12.2014, No 2935 ).

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Chapter XIV – Accounting, Reporting and Audit of a municipal budget

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 84 – Accounting and Reporting of a municipal budget

1. The municipal budget account shall be opened in the unified treasury account system. The right to control the management and operation of that account, as well as to issue permits for the transfer of funds from that account, except for exceptional cases provided for by the legislation of Georgia, shall be reserved exclusively to a relevant municipality.

2. ( Deleted – 12.12.2014, No 2935 ).

3. The financial body of a municipality shall record payments made by each budgetary organisation, including information on all stages of payment carried out according to the budget classification. It shall also keep a record of revenues provided for by the budget classification.

4. The financial body of a municipality shall prepare a report within 10 days of the end of each month showing revenues, payables, changes in the balance and the gross balance of a municipal budget.

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 85 – A quarterly consideration of the execution of a municipal budget

Within 1 month after the end of each quarter, the executive body of a municipality shall submit to the relevant representative body a quarterly review of budget execution with a year-to-date total, which shall include a comparison of the actual volumes of revenues, payables (including funds allocated from the reserve fund), changes in the balance, and the gross balance with the projected indicators for the relevant period.

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 86 – Preparation and submission of an annual report and a statement on the execution of a municipal budget

The financial body of a municipality shall prepare an annual budget execution report and submit it to the representative body not later than 2 months after the end of the budget year.

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 87 – Annual report on the execution of a municipal budget

The annual report on the execution of a municipal budget shall include at least the following information on the execution of an annual budget:

(a) the balance of the budget according to the budget classification;

(b) the comparison of budget revenues and payables according to budget classification with projected indicators for the relevant period;

(c) balances existing in budget accounts at the beginning and the end of a year;

(d) the explanation of a discrepancy between adjusted allocations according to the programmes and the amounts paid if such discrepancy exceeds 30%;

(e) information on the status of allocation of funds from the reserve fund and fund intended for the repayment of debts of previous years and for the enforcement of court decisions (if any);

(f) the description of programmes/subprogrammes implemented by a budgetary organisation within the framework of priorities set by the annual budget and the achieved results;

(g) the annual indicators of the execution of the budgets of legal entities under public law and non-entrepreneurial (non-commercial) c entities provided for by Article 6(b¹.c) and (b².c) of this Code;

(h) the cash execution indicators of the budgets of state enterprises belonging to the governmental sector provided for by Article 6(b³. c) of this Code;

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 88 – Approval of the annual report on the execution of a municipal budget

1. The representative body of a municipality – the Sakrebulo – shall publicly review the annual budget execution report and make a decision on the approval or non-approval of the annual report not later than May 1.

2. The audit report and the annual execution report of a municipal budget shall be public and available to the public in accordance with the procedure established by the legislation of Georgia.

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Title V – Republican Budget of an Autonomous Republic

 

Chapter XV – General Norms for a Republican Budget of an Autonomous Republic

 

Article 89 – The independence of a republican budget of an autonomous republic

1. An autonomous republic shall have its own independent republican budget.

2. The independence of the republican budget of an autonomous republic shall be ensured by its own revenue sources, and the right to independently determine its own payables shall be ensured in accordance with the legislation of Georgia.

 

Article 89¹ – Payables of republican significance

1. Payables of republican significance shall be appropriations provided for by the annual budget under the codes of category I, which include the following as separate codes:

(a) servicing and repayment of liabilities;

(b) the reserve fund of the republican budget of an autonomous republic;

(c) the Fund for the Repayment of the Debts of Previous Years and for the Enforcement of Court Decisions;

(d) transfers to municipalities;

(e) a fund for projects to be implemented in municipalities on the territory of an autonomous republic.

2. Other categories of payables of general republican significance may be determined by an annual budget.

3. In addition to the funds provided for by this chapter, the management of other payments of republican significance shall be determined by an annual budget.

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Law of Georgia No 98 of 16 December 2016 – website, 23.12.2016

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 90 – The reserve fund of the republican budget of an autonomous republic

1. A reserve fund shall be established in the republican budget of an autonomous republic to finance unforeseen payables, the volume of which shall not exceed 2% of the total amount of appropriations provided for by an annual budget.

2. The funds from the reserve fund shall be allocated by the relevant financial body on the basis of a decision of the Chairman of the Government of an autonomous republic, which shall include information on the amount and purpose of funds.

 

Article 91 – Fund for the Repayment of the Debts of Previous Years and for the Enforcement of Court Decisions

1. A fund for the repayment of debts of previous years and for the enforcement of court decisions shall be established in the republican budget of an autonomous republic, the management of which shall be carried out in accordance with the procedure established by the legislation of Georgia and in accordance with a decision adopted by the executive body of an autonomous republic.  

2. The amount of the fund for the repayment of debts of previous years and for the enforcement of court decisions shall be determined by an annual budget.   

Law of Georgia No 4017 of 14 December 2018 – website, 25.12.2018

 

Article 91¹ – Fund for projects to be implemented in municipalities on the territory of an autonomous republic

1. A fund for projects to be implemented in municipalities on the territory of an autonomous republic may be established in the republican budget of an autonomous republic, the management of which shall be carried out in accordance with a decision made by the executive body of an autonomous republic.

2. The financial body shall allocate amounts from the fund for projects to be implemented in municipalities on the territory of an autonomous republic on the basis of the decision made.

3. The volume of the fund for projects to be implemented in municipalities on the territory of an autonomous republic shall be determined by an annual budget.

4. If the amount to be allocated from the fund for projects to be implemented in municipalities on the territory of an autonomous republic shall not exceed GEL 100,000; the Chairman of the Government of an autonomous republic shall be authorised to make a decision on the allocation of funds upon the proposal of a financial body.

Law of Georgia No 98 of 16 December 2016 – website, 23.12.2016

 

Article 92 – Allocation of a republican budget appropriations of an autonomous republic and changes in programme classification

1. The allocation of appropriations from one spending institution to another, except for appropriations allocated in accordance with Articles 90 and 91 of this Code, may only be made by amending an annual budget.

2. It shall be possible to allocate funds between the programmes and subprogrammes of a spending institution, and budget classification articles.

3. The allocation of funds between programmes of a spending institution shall not exceed 5% of the payables approved by an annual budget for that spending institution, except for appropriations allocated in accordance with Articles 90 and 91 of this Code.

4. Based on the relevant legal act and proposals submitted by a spending institution, the executive body of an autonomous republic shall be authorised to make changes (add a programme/subprogramme, change the name of a programme/subprogramme) in the programme classification.

5. Based on the relevant legal act, the executive body of an autonomous republic shall be authorised to make changes (including adding a programme/subprogramme) to revenues and payables provided for by a budget in order to reflect the funds allocated from payables of state significance provided for by the State Budget. Those changes shall be submitted to the representative body of an autonomous republic within 1 month, but not later than the end of a budget year.

6. The annual budget shall be adjusted by appropriations allocated from payables of republican significance and the amendments provided for by paragraphs 2-5 of this article shall be implemented in accordance with the procedure established by the executive body of an autonomous republic.

6¹. The the executive body of an autonomous republic shall determine the procedure for the adjustment of the budgets of legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.b) and (b².b) of this Code for other revenues (non-budgetary funds) permitted by the legislation of Georgia.

7. Based on proposals submitted by spending institutions and decision made by the executive body of an autonomous republic, funds from the allocations allocated to spending institutions may be distributed to payments of republican significance if the distributed funds do not exceed 2% of the allocations approved by an annual budget for payments of republican significance. The financial body of an autonomous republic shall notify the Supreme Council of an autonomous republic about the said distribution.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 93 – Emergency budget

1. In the event of the state of emergency being declared throughout the territory of Georgia or in the territory of an autonomous republic, the representative body of an autonomous republic may approve an emergency budget submitted by the executive body for targeted financing of measures related to the state of emergency.

2. During the operation of the emergency budget, the percentage restrictions established by Articles 90 and 92 of this Code shall be suspended.

 

Chapter XVI – Preparation, Submission and Approval of Draft Republican Budget of an Autonomous Republic

 

Article 94 – Coordination of the process of the preparation and submission of the draft republican budget of an autonomous republic

1. The process of preparing and submitting the draft republican budget of an autonomous republic shall be coordinated by the financial body of an autonomous republic.

2. For the purposes of preparing, submitting and approving the draft republican budget of an autonomous republic budget, the Ministry of Finance of Georgia shall provide the authorities of an autonomous republic with relevant methodological instructions.

     3. If requested by the Ministry of Finance of Georgia, the authorities of an autonomous republics shall be obliged to submit information on the republican budget of an autonomous republic in a timely and complete manner.

 

Article 95 – Document of the priorities of an autonomous republic

1. The document of the priorities of an autonomous republic shall be a basic plan for the development of an autonomous republic, and reflect information about medium-term action plans.

2. The preparation of the document of the priorities of an autonomous republic shall be coordinated by the financial body of an autonomous republic.

3. For the purpose of preparing the document of the priorities of an autonomous republic, the executive body of an autonomous republic shall issue a relevant administrative act by March 1 of each year.

4. For the purpose of agreeing on basic data and directions with the Supreme Council of an autonomous republic, the Chairman of the government of an autonomous republic shall submit to it information on the basic directions of the ministries of an autonomous republic by June 15 of each year. The Supreme Council of an autonomous republic shall send an opinion on the said information to the government of an autonomous republic not later than June 30.

5. The document of the priorities of an autonomous republic shall include at least the following information:

(a) aggregated indicators of the revenues and expenditures of the republican budget of an autonomous republic, operations with financial and non-financial assets and liabilities for the past, current, projected budget years and for the three budget years following the projected one;

(b) the analysis of the final results of the implementation of the republican budget of an autonomous republic for the past budget year and revised forecasts for the current budget year;

(c) for the projected budget year and the three budget years following the projected one:

(c.a) the priorities of an autonomous republic determined by the executive body of an autonomous republic;

(c.b) the programs of the institutions spending the republican budget of an autonomous republic and the amounts, objectives and results of their financing;

(c.c) aggregated indicators on the indicative maximum volume of appropriations provided for each institution spending the republican budget of an autonomous republic;

(d) the indicative maximum number of employees for the projected budget year according to spending institutions;

(e) programmes of municipalities within an autonomous republic and their funding amounts, goals and results.

6. The executive body of an autonomous republic shall approve the document of the priorities of an autonomous republic not later than July 25 (except for the information provided for by paragraph 5(e) of this article).

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 29, 22.6.2010, Art. 189

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 96 – Deadlines for preparing and submitting an application for financial assistance

1. If financial assistance is needed to be received from the State Budget for the projected budget year, the executive body of an autonomous republic shall submit to the Ministry of Finance of Georgia, not later than June 15, the basic data for determining the amount of financial assistance.

2. The Ministry of Finance of Georgia shall notify the executive body of an autonomous republic of the basic budget parameters for the projected budget year by July 15 of the current year, and information on the allocation of financial assistance from the State Budget to the republican budget of an autonomous republic sahll be notified not later than October 5.

 

Article 97 – Budget request and limits

1. Not later than 5 days after the approval of the document of the priorities of an autonomous republic by the government of an autonomous republic, the relevant financial body shall ensure the provision of budget request application forms to spending institutions through the electronic budget management system, using which spending institutions shall electronically submit information on the budgets of projected years to the financial body.

2. The information submitted by spending institutions to the financial body on the budgets of projected years shall comply with the staffing and limits of appropriations determined for spending institutions by the document of the priorities of an autonomous republic.

3. A budget request application shall be submitted to a financial body in accordance with the procedure provided for by paragraph 1 of this article by legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.c) and (b².c) of this Code, which are not spending institutions of the republican budget of an autonomous republic or budgetary organisations subject to their control.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 98 – Submission of a budget request by a spending institution

1. The heads of spending institutions shall submit budget request applications to a financial authority not later than August 25. The budget request application shall contain at least the following information:

(a) for the past, current and projected budget years:

(a.a) the calculation of appropriations provided for spending institutions according to the lowest category of budget classification (except for programme classification);

(a.b) the calculation of appropriations provided for spending institutions according to programme classification;

(a.c) the approved and projected number of employees for spending institutions;

(a.d) information on projects financed by donors and appropriations provided for co-financing and participation in these projects;

(a.e) information on the revenues received from any source permitted by the legislation of Georgia, payables and changes in the balance by a legal entity under public law/non-entrepreneurial (non-commercial) legal entity provided for by Article 6(b¹.b) and (b².b) of this Code;

(b) programmes and subprogrammes to be implemented from the appropriations provided for the spending institution for the projected budget year and for the three budget years following the projected one, their financing, description, goals, expected results and indicators for assessing their implementation;

(c) information on investment/capital projects, in accordance with the methodology provided for by Article 9(4) of this Code.

1¹. The information provided for by paragraph 1(a.e) of this article shall be submitted by budgetary organisations provided for by Article 97(3) of this Code within the period determined by this Code for the submission of a budget request application.

2. The submission of a budget request application by a spending institution above the limits provided for by Article 95(5)(c.c) and (d) of this Code (if any) shall be permitted only in the form provided for by budget request application.

3. If the information reflected in the budget request application differs from the information provided for by Article 95(5)(c.b), (c.c) and (d) of this Code, the spending institution shall submit information about the reasons for this difference to a financial body.

4. The financial body of an autonomous republic shall ensure that appropriations for payments of republican significance are reflected in the draft republican budget.

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 29, 22.6.2010, Art. 189

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 117 of 20 December 2012 – website, 29.12.2012

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 99 – Review of a budget request application and preparation of the draft republican budget of an autonomous republic

1. A financial body shall consider budget request applications and submit the main parameters of the draft republican budget of an autonomous republic to the executive body of an autonomous republic not later than October 15.

2. The executive body of an autonomous republic shall make the final decision on issues of disagreement between spending institutions and a financial body.

3. A financial body shall submit the draft republican budget of an autonomous republic and the document of priorities to the executive body of an autonomous republic not later than October 25.

 

Article 100 – Submission of the draft law on the republican budget of an autonomous republic

1. The Chairman of the government of an autonomous republic shall submit to the Supreme Council, not later than November 1, the draft law on the republican budget of an autonomous republic together with the attached materials.

2. Along with the draft law on the republican budget of an autonomous republic, the document of the priorities of an autonomous republic corresponding to the draft budget shall be submitted to the Supreme Council of an autonomous republic for consideration.

3. The draft law on the republican budget of an autonomous republic shall include at least the following information:

(a) the balance of the republican budget of an autonomous republic according to the budget classification;

(b) revenues of the republican budget of an autonomous republic, changes in the balance and the volume of appropriations determined for each spending institution according to the following articles of the budget classification:

(b.a) expenditures, including appropriations allocated for the purpose of remuneration of labour;

(b.b) increase in non-financial assets;

(b.c) increase in financial assets;

(b.d) decrease in liabilities;

(c) the volume of appropriations determined for spending institutions according to the functional classification of expenditures and operations on non-financial assets;

(d) the volume of the surplus or deficit of the republican budget of an autonomous republic;

(e) the volume of the appropriations of the republican budget of an autonomous republic according to the programme classification;

(f) the volume of the reserve fund;

(f¹) projects financed by targeted credits and grants allocated by donors;

(g) priorities within which spending institutions implement programmes/subprogrammes with financing from the republican budget of an autonomous republic, their description and objectives.

     4. Materials attached to the draft annual budget law shall include:

(a) an explanatory note to the draft republican budget of an autonomous republic, which contains information on the forecasts of fiscal indicators;

(b) a brief overview of the implementation of the republican budget of an autonomous republic of the current year;

(c) the package of legislative amendments necessary for the enactment of the annual budget law.

(d) additional information on the programmes/subprogrammes determined by the budget, their expected results and performance assessment indicators;

(e) information on the revenues received from any source permitted by the legislation of Georgia, payables and changes in the balance by a legal entity under public law/non-entrepreneurial (non-commercial) legal entity provided for by Article 6(b¹.b) and (b².b) of this Code;

(f) information on changes in revenues, payables and balances received from any source permitted by the legislation of Georgia by state enterprises belonging to the governmental sector provided for by Article 6(b³.b) of this Code;

(g) information on investment/capital projects selected and evaluated in accordance with the criteria determined by the methodology provided for by Article 9(4) of this Code, the allocations for the start of which are provided for by the budget of a projected year and/or in the fiscal indicators of the three years following the projected one. The aforementioned information shall include the description of an investment/capital project, its cost, implementation deadlines and expected results.

5. Information provided for by paragraph 3 of this article, except for the information provided for by point (g) of the same paragraph, shall be submitted for the past, current and projected budget years.

6. The information provided for by point (g) of paragraph 3 of this article shall be submitted for the projected budget year and for the three budget years following the projected budget year.

7. Draft law on the republican budget of an autonomous republic with attached materials and the document of the priorities of an autonomous republic shall be made available to the public immediately after submission to a representative body.

8. The budgets of legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.b) and (b².b) of this Code shall be approved in accordance with the procedure established by the legislation of Georgia.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 1395 of 30 November 2017 – website, 8.12.2017

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 101 – Taking into account a financial assistance in the municipal budget

The executive body of an autonomous republic shall notify the relevant bodies of a municipality within the autonomous republic of the estimated amounts of financial assistance not later than November 5.

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

Article 102 – Consideration and approval of the draft law on the republican budget of an autonomous republic

1. The draft law on the republican budget of an autonomous republic and the report of the government on the implementation of the republican budget of an autonomous republic for the current year shall be submitted by the chairman of the government of an autonomous republic or by any member of the government under the instruction received by a relevant legal act. The Supreme Council of an autonomous republic shall also hear the reports of the Commission on Financial, Budgetary and Economic Issues and the State Audit Office.

   2. The Supreme Council of an autonomous republic shall approve the republican budget of the new budget year before the beginning of the new budget year.

  3. The law on the republican budget of an autonomous republic shall be published in accordance with the procedure established by the legislation of Georgia and shall be available to the public.

   4. Not later than 20 days after the budget is approved, the executive body of an autonomous republic shall send to the Ministry of Finance of Georgia a document of the priorities of an autonomous republic corresponding to the approved budget.

Law of Georgia No 6550 of 22 June 2012 – website, 29.6.2012

 

Article 103 – Amendments and/or changes to the Law on the Republican Budget of an Autonomous Republic

 1. Introduction of amendments and/or changes to the appropriations provided for by the annual budget, in addition to the procedure established by Article 92 of this Code, shall require the introduction of amendments and/or changes to the annual budget.

  2. The procedure for the preparation, submission, consideration and adoption of a draft law on amendments and/or changes to the Law on the Republican Budget of an Autonomous Republic shall be determined in accordance with the regulations of the Supreme Council of an autonomous republic.

 

Chapter XVII – Execution of the Republican Budget of an Autonomous Republic

 

Article 104 – The general provision on the execution of the republican budget of an autonomous republic

The executive body of an autonomous republic shall ensure the execution of the republican budget of an autonomous republic within the scope of its competence.

 

Article 105 – Breakdown of the republican budget of an autonomous republic

1. Spending institutions shall submit information to a financial body on the quarterly and/or monthly indicative breakdown of the appropriations allocated to them by the budget within 5 working days of the publication of the Law on the Republican Budget of an Autonomous Republic.

2. The financial body shall review the submitted information together with the spending institutions and, taking into account the available resources, shall make a decision on the quarterly and/or monthly breakdown of the budget not later than 15 days after the publication of the Law on the Republican Budget of an Autonomous Republic.

3. During the quarterly and/or monthly breakdown of the republican budget of an autonomous republic, free balance may be used to finance appropriations, provided that the annual amount of a change in the balance provided for by the annual budget remains unchanged.

4. When submitting the information provided for by paragraph 1 of this article, spending institutions shall also submit information through the electronic budget management system on their budgets and the budgets of legal entities under public law and non-entrepreneurial (non-commercial) legal entities subject to their control provided for by Article 6(b¹.b) and (b².b) of this Code, on revenues permitted by the legislation of Georgia (except for budget revenues) and payments to be made from these sources of revenues, which shall correspond to the information provided for by Article 100(4)(e) of this Code submitted to the relevant representative body.

5. The information provided for by paragraph 4 of this article shall also be submitted within the period provided for by this article by legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.b) and (b².b) of this Code, which are not the spending institutions of the republican budget of an autonomous republic or budgetary organisations subject to their control.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 106 – The responsibility for the execution of the republican budget of an autonomous republic   

1. Budgetary organisations shall be responsible for making payments in accordance with appropriations and collecting revenues within their competence.

2. Tax authorities shall ensure the collection of taxes from the republican budget of an autonomous republic in accordance with the procedure established by the legislation of Georgia.

3. ( Deleted – 12.12.2014, No 2935 ).

4. The Supreme Council of an autonomous republic shall be authorised to control the lawfulness of spending of the republican budget of an autonomous republic by the Government of an Autonomous Republic and, in case of violations, to refer to the Chairman of the Government of an Autonomous Republic with a request to suspend the spending of budget funds.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Chapter XVIII – Record keeping and reporting on the execution of the republican budget of an autonomous republic

 

Article 107 – Record keeping and reporting on the execution of the republican budget of an autonomous republic

   1. The account of the republican budget of an autonomous republic shall be opened in the unified treasury account system. The right to control the management and operation of that account, as well as to issue permits for the transfer of funds from that account, except for exceptional cases provided for by the legislation of Georgia, shall be reserved exclusively to a relevant financial body.

     2. ( Deleted – 12.12.2014, No 2935 ).

 3. The financial body of an autonomous republic shall record payments made by each budgetary organisation under the control of a spending institution, including information on all stages of payment carried out according to the budget classification. It shall also keep a record of revenues provided for by the budget classification.

  4. The financial body of an autonomous republic shall prepare a report within 10 days of the end of each month showing revenues, payables, changes in the balance and the gross balance of the republican budget of an autonomous republic.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

 

Article 108 – Quarterly review of the execution of the republican budget of an autonomous republic

Within 1 month after the end of each quarter, the Government of an Autonomous Republic shall submit to the Supreme Council of an autonomous republic a quarterly review of budget execution with a year-to-date total, which shall include a comparison of the actual volumes of revenues, payables (including funds allocated from the reserve fund), changes in the balance, and the gross balance with the projected indicators for the relevant period.

 

Article 109 – Preparation and submission of an annual report and a statement on the execution of the republican budget of an autonomous republic

  1. Spending institutions, in accordance with the request of the financial body of an autonomous republic, shall prepare final reports within the established deadlines and submit them to the financial body of an autonomous republic not later than February 15. The financial body of an autonomous republic, in turn, shall prepare an annual report on the execution of the republican budget of an autonomous republic and submit it to the government of an autonomous republic for consideration.

  2. The government of an autonomous republic shall submit to the Supreme Council of an autonomous republic not later than 3 months after the end of the budget year an annual report on the execution of the republican budget of an autonomous republic.

Law of Georgia No 4923 of 13 April 2016 – website, 26.4.2016

 

Article 110 – The annual report on the execution of the republican budget of an autonomous republic

The annual report on the execution of the republican budget of an autonomous republic shall include at least the following information on the execution of an annual budget:

(a) the balance of the republican budget of an autonomous republic according to the budget classification;

(b) the comparison of budget revenues and payables according to budget classification with projected indicators for the relevant period;

(c) balances existing in budget accounts at the beginning and the end of a year;

(d) the explanation of a discrepancy between approved and adjusted allocations according to the programmes of spending institutions if such discrepancy exceeds 30%;

(e) the explanation of a discrepancy between adjusted allocations according to the programmes of spending institutions and the amounts paid if such discrepancy exceeds 15%;

(f) information on the status of allocation of funds from the reserve fund and fund intended for the repayment of debts of previous years and for the enforcement of court decisions (if any);

(g) the description of programmes/subprogrammes implemented by spending institutions within the framework of priorities set by the annual budget and the achieved results;

(h) the annual indicators of the execution of the budgets of legal entities under public law and non-entrepreneurial (non-commercial) c entities provided for by Article 6(b¹.b) and (b².b) of this Code;

(i) the cash execution indicators of the budgets of state enterprises belonging to the governmental sector provided for by Article 6(b³.b) of this Code;

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014

Law of Georgia No 2384 of 15 December 2022 – website, 23.12.2022

 

Article 111 – Approval of the annual report on the execution of the republican budget of an autonomous republic

The Supreme Council of an Autonomous Republic shall, before the end of the spring session, make a decision on the approval or non-approval of the annual report on the execution of the republican budget of an autonomous republic.

Law of Georgia No 4923 of 13 April 2016 – website, 26.4.2016

 

Title VI – Transitional and Final Provisions

 

Chapter XIX – Transitional provisions

 

Article 112 – (Deleted)

Law of Georgia No 4108 of 17 December 2010 – LHG I, No 75, 27.12.2010, Art. 483

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

 

Article 113 – Restriction on the distribution of appropriations

The distribution of appropriations from the republican budgets of autonomous republics and the budgets of local self-government units in 2010 shall be carried out within 10%.

 

Article 113¹ – Loans issued from the State Budget before 1 January 2010

1. Regarding an overdue loan debt arising from loans issued from the State Budget before 1 January 2010, if the relevant agreement provides for the possibility of repaying an overdue loan debt in any form, Article 63 of this Code shall apply to the recipient of a loan. In addition, in such a case, the lender shall not be limited by the 6-month period provided for by Article 63(3) of this Code.

2. If a relevant agreement concluded on loans issued from the State Budget before 1 January 2010 does not provide for the possibility of repayment of an overdue loan debt in any form, the repayment of an overdue loan debt towards the recipient of a loan shall be administered by the tax authority, by the decision of the Minister of Finance of Georgia, in accordance with the procedure established by the Tax Code of Georgia. The procedure for applying to the Minister of Finance of Georgia on the issue provided for by this paragraph and making a decision by him/her shall be determined by the order of the Minister of Finance of Georgia.

3. This article shall not apply to the recipient of a loan, if:

(a) a case regarding the repayment of overdue loan debt is being under consideration in court proceedings;

(b) there is a legally binding court decision or ruling regarding the repayment of an overdue loan debt.

Law of Georgia No 3265 of 29 June 2010 – LHG I, No 31, 27.6.2010, Art. 198

Law of Georgia No 4108 of 17 December 2010 – LHG I, No 75, 27.12.2010, Art. 483

 

Article 114 – Measures related to the entry of the Code into force

The executive and representative bodies of autonomous republics shall ensure the introduction of appropriate amendments to the legal acts in force on the territories of autonomous republics within 3 months of the entry into force of this Code.

 

Article 114¹ – Measures related to the distribution and use of net profits of enterprises operating with state participation

Before 15 March 2011, the Government of Georgia shall ensure the consideration of proposals on the distribution and use of net profits of enterprises operating with state participation and determine the composition and procedure for activities of the decision-making commission

Law of Georgia No 4210 of 22 February 2011 – website, 10.3.2011

 

Article 114² – Transitional provisions related to the preparation of a programme budget

Article 6(q) and (r) and Article 8(1) of this Code shall apply to budgets approved by the relevant authorities of autonomous republics and local self-government bodies before 1 January 2013, in the version that was in force before 1 January 2012.

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011   

 

Article 114³ – Transfer of funds from commercial bank accounts of local self-governments, autonomous republics, as well as legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by this Code to the unified treasury account system

The Government of Georgia shall, by 1 January 2015, develop a procedure for the transfer of funds from commercial bank accounts of local self-governments, autonomous republics, as well as legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by this Code to the unified treasury account system.

Law of Georgia No 2935 of 12 December 2014 – website, 24.12.2014  

 

Article 114⁴ – Determining legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by this Code

1. The provisions determined by this Code for legal entities under public law and non-profit (non-commercial) legal entities provided for by Article 6(b¹) and (b²) of this Code shall apply to public schools, early and preschool education and training institutions, and other preschool education institutions until the end of the 2025 budget year.

1¹. The Ministry of Finance of Georgia, within the scope of its competence, on the basis of consultations with the Ministry of Education, Science and Youth of Georgia, the Ministry of Regional Development of Georgia and municipalities, shall ensure, within the period determined by paragraph 1 of this article, the gradual distribution of the provisions determined by this Code for legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹) and (b²) of this Code among the institutions specified in the same paragraph.

2. The provisions of this Code shall apply to legal entities under public law and non-entrepreneurial (non-commercial) legal entities provided for by Article 6(b¹.b) and (b².b) of this Code for the 2016 budget year, with the exception of legal entities established by self-governing cities or their bodies or subject to their control.  

Article 114⁵ – Transition period for transition from the equalisation transfer system to the value added tax distribution system  

 1. The transition period for transition from the equalisation transfer system to the value added tax distribution system shall be from 2019 to 2026.

2. The forecast amount to be received by each municipality as a result of the distribution of value added tax in 2019 shall not exceed the total amount of the equalisation transfer determined for the same municipality in 2018 and the income tax determined by Article 77(6) of this Code by more than 25%.

3. Resources exceeding the percentage determined by paragraph 2 of this article shall be allocated in accordance with paragraph 4 of this article to the revenues of municipalities whose projected value added tax for the same municipalities in 2018 is less than the total of the equalisation transfer and the projected income tax revenue in accordance with Article 77(6) of this Code.

4. The resources provided for by paragraph 3 of this article shall be distributed to the municipalities specified in the same paragraph in proportion to the share of each municipality revenue deficit in the total deficit of all municipalities.

 5. The maximum percentage of the increase in the projected volume of revenue received by each municipality as a result of the distribution of value added tax in 2020−2026 compared to the previous year shall be determined by the Law on State Budget.

6. The percentage determined on the basis of paragraph 5 of this article shall not be less than 25% in each year.

7. Resources exceeding the percentage determined on the basis of paragraph 5 of this article shall be directed in 2023 as follows:

(a) the said resource shall be directed at the first stage to the revenues of the municipality, the value added tax of which is less than GEL 5 million, in an amount that ensures the determination of the projected value added tax of that municipality at GEL 5 million;

(b) remaining resources, in accordance with paragraph 4 of this article, shall be allocated to the revenues of a municipality whose projected value added tax revenue is less than the indicator of the previous year.

7¹. The restriction provided for by paragraph 5 of this article shall not apply to a municipality whose projected value added tax revenue, in the case of distribution without the aforementioned restriction, is less than GEL 15 million.

 7². Resources exceeding the percentage determined on the basis of paragraph 5 of this article shall be directed in 2025-2026 as follows:

(a) those resources shall be allocated in the first stage to the revenues of a municipality whose projected value added tax revenue, in the case of distribution without restrictions provided for by paragraph 5 of this article, exceeds GEL 15 million, and is less than GEL 15 million in the case of the aforementioned restrictions, in the amount that ensures the replenishment of the projected value added tax revenue of that municipality up to GEL 15 million; 

(b) remaining resources shall be directed to the revenues of a municipality, the projected value added tax revenue to be received by which is less than the corresponding rate of the previous year, in proportion to the share of the revenue shortfall of each municipality in the total revenue shortfall of all municipalities.

8. The Ministry of Finance of Georgia shall calculate the percentage of value added tax to be received by each municipality in accordance with Article 71 of this Code and this article for the purpose of reflecting it in the draft Law on the State Budget. 

 

Chapter XX – Final Provisions

 

Article 115 – Invalidated normative acts

The following shall be considered invalid upon the entry into force of this Code:

(a) Law of Georgia of 24 April 2003 On the Budgetary System of Georgia  (Legislative Herald of Georgia, No 12, 21.5.2003, Art. 62);

(b) Law of Georgia of 28 December 2007 On the Distribution of Revenues between Budgets  (Legislative Herald of Georgia, No 50, 29.12.2007, Art. 437);

(c) Law of Georgia of 24 May 2006 on the Budget of a Local Self-Government Unit of Georgia (Legislative Herald of Georgia, No 20, 9.6.2006,  170);

(d) Law of Georgia of 14 March 2008 On Future Generations and Sustainable Development Funds (Legislative Herald of Georgia, No 7, 26.3.2008, Art. 37);

(d) Law of Georgia of 14 March 2008 On Global Competitiveness of the Financial Sector (Legislative Herald of Georgia, No 7, 26.3.2008, Art. 28).

 

Article 116 – Entry of this Code into force

1. This Code, except for Article 36(1)(c), Article 37(4), Article 38(3)(i), Article 56(i), Article 77(4)(c) and (10)(h), Article 87(g), Article 98(1)(c), Article 100(3)(g) and Article 110(h), shall enter into force from 1 January 2010.

2. Article 36(1)(c) and Article 38(3)(i) of this Code shall enter into force from 1 January 2011.

3. ( Deleted – 28.10.2011, No 5172 ).

4. ( Deleted – 28.10.2011, No 5172 ).

5. ( Deleted – 28.10.2011, No 5172 ).

6. Paragraphs 25, 25.1, 25.2 and 25.3 of the Annex to this Code (The Distribution of Revenues between the State Budget of Georgia, the Republican Budgets of the Autonomous Republics of Abkhazia and Ajara and Municipal Budgets According to Percentage Values) shall be effective until 1 December 2010.

7. The effect of Article 45¹ of this Code shall be suspended until 1 January 2028.

Law of Georgia No 3235 of 29 June 2010 – LHG I, No 34, 9.7.2010, Art. 198

Law of Georgia No 5172 of 28 October 2011 – website, 7.11.2011

Law of Georgia No 3975 of 15 December 2023 – website, 26.12.2023

 

President of Georgia                                          Mikheil Saakashvili

Tbilisi,

18 December 2009

No 2440 – II ს

Annex

 

Distribution of revenues among the State Budget, republican budgets of the Autonomous Republics of Abkhazia and Ajara and municipal budgets according to percentage values

Law of Georgia No 6946 of 15 July 2020 – website, 28.7.2020

 

No	Name of a Revenue	State Budget of Georgia	Republican budget of the autonomous republics of Abkhasia and Ajara	Municipal  Budget
1	2	3	4	5
1	Income tax:
1.1	Income tax, except for income tax paid by taxable entities registered in the territory of autonomous republics	100
1.2	Income tax paid by taxable entities registered in the territory of autonomous republics		100
1.3	(Deleted  – 14.12.2018, No 4017)			100
2	Profit tax	100
3	Property tax			100
4	Value Added Tax	80		20
5	Excise tax	100
6	Import tax	100
7	Other taxes (including fines paid by a tax authority and/or customs authority that are not charged to a specific tax), except for cancelled taxes	100
8	Interest (profit) from certain financial assets, in particular, from deposits (from securities other than shares), loans, payables and other interest income, intended for:
8.1	for the central authority	100
8.2	for the authorities of the autonomous republics		100
8.3	for a municipality			100
9	Income from dividends and profits of the National Bank of Georgia:
9.1	From the profits of enterprises operating with state participation and private enterprises	100
9.2	From the profits of enterprises operating with the share participation of the authorities of autonomous republics, and private enterprises		100
9.3	From the profits of enterprises operating with the share of local government participation, and private enterprises			100
9.4	From the profit of the National Bank of Georgia	100
10	Taxes levied for the use of natural resources:
10.1	For the use of natural resources extracted in the territory of autonomous republics		100
10.2	For the use of natural resources extracted in the territory of municipalities (except for the municipalities of autonomous republics)			100
11	Income from the lease and management (usufruct, lease, rental, etc.) of state land which:
11.1	is located in the territories of autonomous republics and is not in the use of autonomous republics	65	35
11.2	Is located in the territory of a municipality (except for the municipalities of autonomous republics) and is not in the use of municipalities	50		50
11.3	is in the use of autonomous republics		100
11.4	is in the use of municipalities (except for the municipalities of the autonomous republics)			100
12	Income from the lease and management (usufruct, lease, rental, etc.) of land belonging to an autonomous republic	35	65
13	Income from the lease and management (usufruct, lease, rental, etc.) of land belonging to a municipality			100
14	Income from the fee for issuing a license for use, paid to:
14.1	the relevant bodies of the central authority	100
14.2	the relevant bodies of autonomous republics		100
15	A rent (except for a land), paid to:
15.1	the relevant bodies of the central authority	100
15.2	the relevant bodies of autonomous republics		100
15.3	by the authorised person of a municipality body			100
16	(Deleted)	100
17	Licence fees, paid to:
17.1	the relevant bodies of the central authority	100
17.2	the relevant bodies of autonomous republics		100
18	Permit fees, paid to:
18.1	the relevant bodies of the central authority	100
18.2	the relevant bodies of autonomous republics		100
18.3	by the authorised person of a municipality body			100
19	State certificate fee	100
20	Registration fee	100
21	State expertise fee	100
22	State fee, paid for:
22.1	cases under consideration in the courts of Georgia	100
22.2	For the issuance of citizenship and identity documents on the territory of Georgia, for the registration of civil status acts, for the consideration of citizenship and emigration/immigration issues on the territory of Georgia:
22.2.1	by the relevant services of central authority, except for the cases when the receipt of the documentation required for the issuance of a Georgian visa or the extension of its validity period, and the affixing of the visa in the travel document or the electronic issuance of a Georgian visa provided for by the Law of Georgia On the Legal Status of Aliens and Stateless Persons, is ensured by a legal entity under public law within the governance of the Ministry of Justice of Georgia and/or its powers are exercised by a municipality on the basis of a delegation agreement	100
22.2.2	the relevant bodies of autonomous republics		100
22.2.3	by the competent person of a municipal body, except for the cases when the receipt of the documentation required for the issuance of a Georgian visa or the extension of its validity period, and the affixing of the visa in the travel document or the electronic issuance of a Georgian visa provided for by the Law of Georgia On the Legal Status of Aliens and Stateless Persons, is ensured by a legal entity under public law within the governance of the Ministry of Justice of Georgia and/or its powers are exercised by a municipality on the basis of a delegation agreement			100
22.3	Other state fee, paid to:
22.3.1	the relevant bodies of the central authority	100
22.3.2	the relevant bodies of autonomous republics		100
22.3.3	by the authorised person of a municipality body			100
23	Consular fee	100
24	Fee for copying public information, paid to:
24.1	the relevant bodies of the central authority	100
24.2	the relevant bodies of autonomous republics		100
24.3	by the authorised person of a municipality body			100
25	(Deleted – 9.2.2023, No 2576)
26	Fee for the issuance of a permit for outdoor advertising			100
27	Fee for the postponement of conscript enlistment in the national military service	100
28	fee for gambling business (except for organising lotteries)			100
28 ​ 1	Fee  for gambling business established for organising lotteries	100
29	Cleaning fee for inhabited areas			100
30	Cultural heritage rehabilitation area infrastructure fee			100
31	(Deleted – 20.7.2018, No 3222)
32	Fee for construction permit (except for the construction of the radiation and nuclear facilities of special importance)			100
32 ​ 1	Expedited service fee for issuing (amending) an act confirming compliance with construction permit conditions (commissioning) (except for the construction of the radiation or nuclear facilities of special importance)			100
32 ​ 2	(Deleted – 20.7.2018, No 3222)
323	Expedited service fee for issuing an act on construction carried out without a permit or in violation of the requirements of construction documentation in the event of recognition of an offence in the field of construction by an offender in the field of construction			100
33	Revenue from issuing a permit for regular passenger transportation within the administrative borders of a municipality			100
33 ​ 1	Revenue from issuing a permit for transportation by car – a taxi (category M1) in the capital of Georgia			100
34	Other fees, paid to:
34.1	the relevant bodies of the central authority	100
34.2	the relevant bodies of autonomous republics		100
34.3	by the authorised person of a municipality body			100
35	Goods and services sold in a non-market manner:
35.1	Revenue from the nominal value of excise stamps	100
35.2	Income from the sale of other goods, paid to:
35.2.1	the relevant bodies of the central authority	100
35.2.2	the relevant bodies of autonomous republics		100
35.2.3	by the authorised person of a municipality body			100
35.3	Income from services rendered by:
35.3.1	the relevant bodies of the central authority	100
35.3.2	the relevant bodies of autonomous republics		100
35.3.3	by the authorised person of a municipality body			100
35.4	Income from the lease or management of property of state significance (usufruct, rental, etc.)	100
35.5	Income from the transfer of state property (except land) for lease or management (usufruct, rental, etc.), which:
35.5.1	is located in the territory of autonomous republics and is in state use	65	35
35.5.2	is located in the territory of municipalities (except the municipalities of autonomous republics) and is in state use	65		35
35.5.3	is in the use of autonomous republics		100
35.5.4	is in the use of municipalities (except for the municipalities of the autonomous republics)			100
35.6	Revenue from the transfer of property (except land) owned by autonomous republics for lease or management (usufruct, rental, etc.)	35	65
35.7	Revenue from the transfer of property (except land) owned by municipalities for lease or management (usufruct, rental, etc.)			100
35.8	Income from the transfer of other state property (except land) for lease or management (usufruct, rental, etc.), paid to:
35.8.1	the relevant bodies of the central authority	100
35.8.2	the relevant bodies of autonomous republics		100
35.8.3	by the authorised person of a municipality body			100
36	Revenue from sanctions (fines, surcharges)
36.1	Income from administrative violations in various fields, paid to:
36.1.1	the relevant bodies of the central authority	100
36.1.2	the relevant bodies of autonomous republics		100
36.1.3	by the authorised person of a municipality body			100
36.2	Revenue from fines paid for the violation of traffic regulations	40		60
36.3	Income from fines paid for border trespassing	100
36.4	Revenue from fines paid for the violation of the maturity date of an issued loan, paid to:
36.4.1	the relevant bodies of the central authority	100
36.4.2	the relevant bodies of autonomous republics		100
36.4.3	by the authorised person of a municipality body			100
36.5	Revenue from fines paid for violations identified in architectural and construction activities, paid to:
36.5.1	the relevant bodies of the central authority	100
36.5.2	the relevant bodies of autonomous republics		100
36.5.3	by the authorised person of a municipality body			100
36.6	Revenue from fines provided for by the Criminal Code of Georgia	100
36.7	Revenue from other fines and surcharges, paid to:
36.7.1	the relevant bodies of the central authority	100
36.7.2	the relevant bodies of autonomous republics		100
36.7.3	by the authorised person of a municipality body			100
37	Revenue from current transfers, donations and charities (excluding grants), intended:
37.1	for the central authority	100
37.2	for the authorities of the autonomous republics		100
37.3	for municipalities			100
38	Revenue from compensation for the change of the intended purpose of agricultural land plots and compensation for damage caused by the deterioration of land quality as a result of the inappropriate use of agricultural land	100
39	Revenue from exchange rate changes, received:
39.1	by the central authority	100
39.2	by the authorities of the autonomous republics		100
39.3	by the municipality bodies			100
40	Revenue from non-financial assets:
40.1	Revenue from the sale of fixed assets, including:
40.1.1	from the sale of fixed assets of state significance	100
40.1.2	from the sale of state fixed assets
40.1.2.1	is located in the territory of an autonomous republic	60	40
40.1.2.2	is in the use of autonomous republics		100
40.1.2.3	is located in the territory of municipalities (except for the municipalities of autonomous republics and the privatisation of forests within the territorial borders of settlements provided for by the Law of Georgia On State Property, and the amounts received from it are fully transferred to the municipal budget)	60		40
40.1.2.4	is in the use of municipalities (except for the municipalities of the autonomous republics)			100
40.2	Revenue from the sale of fixed assets owned by autonomous republics	35	65
40.3	Revenue from the sale of fixed assets owned by municipalities			100
40.4	Revenue from the sale of licenses, carried out by:
40.4.1	the relevant bodies of the central authority	100
40.4.2	the relevant bodies of autonomous republics		100
40.5	Revenue from the sale of material reserves:
40.5.1	Revenue from the sale of strategic reserves	100
40.5.2	Revenue from the sale of other material reserves (raw materials and supplies, incomplete production, finished products and goods purchased for further sale), carried out by:
40.5.2.1	the relevant bodies of the central authority	100
40.5.2.2	the relevant bodies of autonomous republics		100
40.5.2.3	by the authorised person of a municipality body			100
40.6	Revenue from the sale of valuables, carried out by:
40.6.1	the relevant bodies of the central authority	100
40.6.2	the relevant bodies of autonomous republics		100
40.6.3	by the authorised person of a municipality body			100
40.7	Revenue from non-derivative assets:
40.7.1	Revenue from the sale of state-owned non-agricultural land that is
40.7.1.1	located in the territories of the autonomous republics	50	50
40.7.1.2	in the territory of municipalities (except for the municipalities of the autonomous republics)	40		60
40.7.1.3	Revenue from the sale of non-agricultural land owned by autonomous republics		100
40.7.1.4	Revenue from the sale of municipality-owned non-agricultural land			100
40.8	Revenue from the sale of state-owned agricultural land that is
40.8.1	located in the territories of the autonomous republics	35	65
40.8.2	in the territory of municipalities (except for the municipalities of the autonomous republics)	10		90
40.9	Revenue from the sale of agricultural land owned by autonomous republics		100
40.10	Revenue from the sale of municipality-owned agricultural land			100
40.11	Revenue from minerals	100
40.12	Revenue from radio frequency spectrum usage license	100
40.13	Revenue from other natural assets	100
40.14	Revenue from non-derivative intangible assets (patents, leasing agreements and other similar contracts, as well as acquired goodwill), paid to:
40.14.1	the relevant bodies of the central authority	100
40.14.2	the relevant bodies of autonomous republics		100
40.14.3	by the authorised person of a municipality body			100
40.15	Revenue from the recognition of ownership rights to land			100
41	Revenue from financial assets and liabilities intended:
41.1	for the central authority	100
41.2	for the authorities of the autonomous republics		100
41.3	for municipalities			100
42	Environmental impact assessment fee	100
43	Container fee			10

 

 

 

Note: 19% of the revenues received in the form of value added tax provided for by row 4 of this table, is the sum of taxes to be distributed to the budgets of all municipalities, the distribution of which to each municipality is carried out in accordance with the procedure established by Articles 71 and 114⁵ of this Code.