The draft of the 2026 state budget, the main financial document, has been submitted to the Parliament. The Parliament will begin reviewing the state budget project next week, discussing it in a committee format from October 7-13, after which it will be returned to the government. Subsequently, the revised version of the budget project will proceed to the plenary session for further consideration.
According to the initial version of the budget project, the expenditure part of the 2026 consolidated budget amounts to a total of 35.5 billion GEL, within which, according to the Ministry of Finance, all state obligations will be fully funded.
The initial version of the budget project outlines the following macroeconomic parameters for 2026:
Real economic growth is planned at 5.0%, while the medium-term forecast for real economic growth is set at 5.3%.
The nominal GDP forecast is set at 110.5 billion GEL, with per capita GDP exceeding 10,900 USD.
By 2029, nominal GDP is projected to grow to 140.9 billion GEL, with per capita GDP exceeding 13,900 USD.
Consolidated budget tax revenues are set at 26.8 billion GEL, equivalent to 24.2% of GDP. The consolidated budget deficit is 2.5% of GDP, while the government debt level remains within 35.0% of GDP.
Regarding expenditures, in the social sector:
Funding for healthcare and social protection programs has been increased by more than 800.0 million GEL, within which:
Pensions for individuals aged 70 and older will increase by 45 GEL, set at 495 GEL. In high-mountainous settlements, pensions for this category will amount to nearly 594 GEL.
Pensions for individuals under 70 will increase by 20 GEL, set at 370 GEL, and 444 GEL in high-mountainous settlements.
In addition to pensions, an increase of 45 GEL is planned for social benefits for persons with severe disabilities and those under 18 with disabilities, while benefits for other categories of persons with disabilities will increase by 20 GEL.
Total funding for social programs amounts to 7.0 billion GEL.
Over 2.1 billion GEL is allocated for healthcare programs, including a 10% salary increase for primary healthcare personnel.
240.0 million GEL is allocated to provide housing for internally displaced persons (IDPs).
Education Sector:
Up to 3.4 billion GEL is allocated for education and science, including:
Up to 1.7 billion GEL for public school funding.
Over 500.0 million GEL for the construction and rehabilitation of public schools.
110.0 million GEL for the construction and rehabilitation of kindergartens.
Culture and Sports:
Over 1,050.0 million GEL from the consolidated budget and 615.0 million GEL from the state budget are allocated for culture and sports.
Defense and Security:
Over 3.5 billion GEL is allocated for funding the Ministry of Defense, the Ministry of Internal Affairs, and security services, including a 10% salary increase for police officers and soldiers.
445.0 million GEL is allocated for defense infrastructure and capability development.
Infrastructure:
A total of over 7.6 billion GEL from the consolidated budget is allocated for infrastructure development, including:
Up to 1.2 billion GEL for improving road infrastructure, with 681.0 million GEL for highway construction.
Over 2.6 billion GEL for improving municipal infrastructure.
Over 570.0 million GEL for improving water supply and sewage systems.
Over 820.0 million GEL for educational infrastructure.
150.0 million GEL for improving tourism infrastructure.
200.0 million GEL for the construction and rehabilitation of sports infrastructure.
Small and Medium Enterprises:
Over 270.0 million GEL is allocated in 2026 to support small and medium businesses.
Agriculture:
Over 660.0 million GEL is allocated for funding agricultural programs.
Environmental Protection:
Up to 210.0 million GEL is allocated for environmental protection programs.
Public Sector Salaries:
In accordance with amendments made to legislation regulating public sector salaries in 2022, a 10% salary increase for employees of budgetary organizations is planned for 2026.
The Parliament will approve the final version of the 2026 budget by the end of December.
