Giorgi Kakauridze, the First Deputy Finance Minister, introduced the Draft State Budget 2026 to the Economic Policy Committee.

As he elucidated, the real economic growth in 2026 is planned at 5,0%, and the real economic growth forecast in the average term constitutes 5,3%.

The GDP deflator forecast is at 4%, decreasing to 3,0% for the upcoming years.

According to the reporter, the average inflation forecast is at 3,6%, remaining within the target index (3%) in the average term. Nominal GDP forecast is determined by 110,5 bl. GEL, and GDP per capita exceeds 10,900 USD.

As noted, the mixed budget tax revenues are forecasted in the amount of 26,8 bl. GEL providing that the budget deficit in regard to GDP shall be at 2,5%.

The expenditures part of the mixed budget for 2026 in sum constitutes 35,5 bl. GEL.

Speaking about the tax revenues for 2026, the reporter reported that:

---The tax revenues forecast is determined by 8,970,0 ml GEL, including the state budget share - 8,170,0 ml GEL and the share of the Autonomous Republics - 800,0 ml GEL;
---The profit tax forecast is determined by 3,150,0 ml GEL;
---VAT forecast is determined by 10,850,0 ml GEL, including the state budget share - 8680,0 ml GEL, and the municipalities` share - 2,170,0 ml GEL;
---The excise forecast index is 2,700,0 ml GEL;
---The import tax forecast - 150,0 ml GEL;
---The property tax forecast - 800,0 ml GEL, while other taxes are forecasted by 180,0 ml GEL.

According to him, the mixed budget privatization index is 350,0 ml GEL.

In accordance with the Draft, the total index of the state budget incomes was determined by 30290,8 ml GEL; the state budget assignments constitute 30,475,9 ml GEL.

Pursuant to the Draft:

- 1,142,5 ml GEL is allocated for the Economy and Sustainable Development Ministry to be consumed on: 237,7 ml GEL for the enterpreneurship, 49,1 ml GEL for tourism, 145,9 ml GEL for innovations and technologies, 222,0 ml GEL for electricity transmission line construction and rehabilitation, including 25,0 ml GEL for the Black Sea Submarine cable project and geological studies, 60,0 ml GEL for the construction of Kutaisi International Airport runways, and 150,0 ml GEL for the water infrastructure of the Anaklia Port.

"We will continue working on refining both the forecasts and the revenues. We will hold consultations with the Ministries as well as with the Parliament, and we plan to have the finalized version of the budget - the one that will have your support - ready by the end of November", - the reporter noted.

After the report, Kakauridze answered the questions.

According to Shota Berekashvili, Chair of the Committee, the national economy is being developed in a proper direction.

"Over the next four years, it is extremely important to give strategically leading economic sectors the maximum opportunity for development. To achieve this, we need greater access to capital markets in order to attract more investments into the country", - he stated.

The Committee approved the Draft Budget.

Kakauridze also introduced the review of the 6-month implementation of the state budget 2025.

The Committee also deliberated on three documents submitted by the Government for ratification:

---Loan Agreement between Georgia and IBRD (Log-In Georgia extra financing);
---Reservations and Notices submittable by Georgia within the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting;
---Protocol to the Change in the Agreement signed on October 15, 2007, in Luxembourg on the Treaty on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion between Georgia and the Grand Duchy of Luxembourg.