Budget Code of Georgia

Law

of Georgia

Budget

Code

of Georgia

Article 1. Purpose of the Code🔗

This Code defines the principles of formation of the budget system of Georgia, regulates the rules for the preparation, consideration and approval of the draft state, republican budgets of the autonomous republics and municipal budgets, the execution of budgets, reporting and control, as well as the budgetary relations and responsibility of the central, autonomous republics and municipalities of Georgia and of the legal entities created/established by them.

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020

Article 1¹. Scope of the Code🔗

1. The operation of this Code extends to the bodies of the central, autonomous republics and local authorities of Georgia, to the legal entities and organizations created/established by them, except for the exceptions provided for by paragraph 2 of this article, as well as to the state enterprises assigned to the government sector.

2. The operation of this Code does not extend to the National Bank of Georgia, national regulatory bodies and entrepreneurial legal entities, except for the state enterprises assigned to the government sector provided for by paragraph 1 of this article, as well as to membership-based legal entities, except when they are organizations authorized to dispose of funds within the framework of the respective programs/subprograms defined by the respective budgets provided for by this Code.

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

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

Article 2. Budget System of Georgia🔗

The budget system of Georgia is a set of budgetary relations regulated by legal acts for the purpose of mobilizing and using monetary funds for the performance of the functions of the central, autonomous republics and local authorities of Georgia.

Article 3. Legal Foundations of the Budgetary System of Georgia🔗

The budgetary powers of the participants of the budgetary system of Georgia shall be 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 Adjara”, the Organic Law of Georgia “Local Self-Government Code”, the Organic Law of Georgia “On Approval of the Constitution of the Autonomous Republic of Adjara”, this Code, the Law of the Autonomous Republic of Adjara “On the Budgetary Process and Powers of the Autonomous Republic of Adjara”, the legislation of Georgia on taxes and fees, other legislative and subordinate normative acts of Georgia, as well as on the basis of legal acts adopted (issued) by the central, autonomous republics and local authorities of Georgia.

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

Law of Georgia of 5 February 2014 No. 1959 – website, 19.02.2014.

Article 4. Basic Principles of the Budgetary System of Georgia🔗

1. Each participant of the budgetary system of Georgia shall, at all stages of the budgetary process, observe the following principles:

a) Comprehensiveness – complete reflection of all budget revenues, expenditures and changes in balances in the respective budgets;

b) Transparency – publicity of the procedures for consideration of draft budgets in representative bodies for the public and the mass media; publication of approved budgets and reports on their execution; accessibility of information about the budget (except for secret information) to any natural and legal person;

c) Accountability – responsibility of all participants of the budgetary process for the activities carried out by them and for the information submitted about the budget;

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

e) Unity – guidance by the central, autonomous republic and local authorities of Georgia by common grounds, a unified budget classification, a unified accounting system, unified principles of state financial control;

f) Universality – allocation of all budget revenues to finance common expenditures, except for the cases determined by this Code. At the same time, no revenue, except for revenues funded by donors, shall be allocated for a specific purpose, to finance a specific expenditure. Retention of revenues received by a budgetary organization for its own purposes is inadmissible, except in the case where the budgetary organization is a Legal Entity of Public Law and/or a non-entrepreneurial (non-commercial) legal entity;

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

Law of Georgia of 20 December 2012 No. 117 - website, 29.12.2012.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 5. Budgetary Process🔗

The budgetary process is an integral part of the budgetary system of Georgia. The budgetary process is the activity of the participants of the budgetary system of Georgia, which includes the preparation, submission, consideration, approval, specification, execution, reporting and control of the budget.

Article 6. Definition of terms used in the Code🔗

The terms used in this Code have the following meanings:

a) authorities of the autonomous republics – the authorities of the Autonomous Republics of Abkhazia and Adjara;

b) local authorities – municipal bodies;

b¹) Legal Entity of Public Law – for the purposes of this Code, a legal entity having the status of a Legal Entity of Public Law provided for by the legislation of Georgia, which:

b1.a) is created/established by the relevant law, a Resolution of the Government of Georgia or, on the basis of a law, by an administrative act of a state governance body, or is a Legal Entity of Public Law established by this Legal Entity of Public Law;

b1.b) is created/established by a normative act of the highest executive body of an Autonomous Republic, or is a legal entity established by this Legal Entity of Public Law;

b1.c) is created/established by the relevant body of a municipality, in accordance with the procedure determined by the Organic Law of Georgia "Local Self-Government Code", or is a legal entity established by this Legal Entity of 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 body of the central authorities 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 a body of the authorities 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) state enterprise attributed to the government sector – created with the state's share participation, reflected in the register approved by Order of the Minister of Finance of Georgia in accordance with the budget classification of Georgia, attributed to the government sector:

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

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 – the aggregate of revenues to be received, expenditures to be incurred and changes in the balance, approved by the relevant bodies of the central authorities, autonomous republics and local authorities of Georgia, for the purpose of performing the functions and obligations of the central authorities, autonomous republics and local authorities of Georgia;

c¹) Budget of a Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity – the aggregate of receipts to be received from all sources permitted by the legislation of Georgia, payments to be made from these sources and changes in the balance, for the purpose of performing the functions and obligations of the legal entity provided for by subparagraphs "b 1"/"b 2" of this Article, which is approved in accordance with the procedure established by the legislation of Georgia;

c²) Budget of a state enterprise assigned to the government sector − the aggregate of receipts to be received from all sources permitted by the legislation of Georgia, payments to be made from these sources and changes in the balance, for the purpose of performing the functions and obligations of the legal entity provided for by subparagraph "b3" of this Article;

d) Combined budget of Georgia – the consolidated budget of the State of Georgia, the republican budgets of the autonomous republics and the budgets of the municipalities. The combined budget shall not be subject to approval by the representative body of any authority;

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

e) State budget – the aggregate of receipts to be received, payments to be made and changes in the balance, approved by the Parliament of Georgia, for the purpose of performing the functions and obligations of the central government of Georgia;

e¹) Central budget – the consolidated budget of the State budget and the budgets of the legal entities provided for by subparagraphs "b1.a", "b2.a" and "b3.a" of this Article. The central budget shall not be subject to approval by the representative body of any authority;

f) Combined budget of an autonomous republic – the consolidated budget of the republican budget of the Autonomous Republic of Abkhazia or Adjara and, accordingly, of the municipalities within its composition. The combined budget of an autonomous republic shall not be subject to approval by the representative body of any authority;

f¹) Unified budget of an autonomous republic – the consolidated budget of the unified republican budget of the autonomous republic and the unified municipal budgets of the municipalities within its composition. The unified budget of an autonomous republic shall not be subject to approval by the representative body of any authority;

g) Republican budget of an autonomous republic – the aggregate of receipts to be received, payments to be made and changes in the balance, approved by the Supreme Council of the autonomous republic, for the purpose of performing the functions and obligations of the government of the autonomous republic;

g¹) consolidated republican budget of the Autonomous Republic – the consolidated budget of the republican budget of the Autonomous Republic and the budgets of the legal entities provided for by subparagraphs „b1.b“, „b2.b“ and „b3.b“ of this article. The consolidated republican budget of the Autonomous Republic shall not be subject to approval by the representative body of any authority;

h) municipality budget – the totality of receipts to be received, payments to be made and changes in the balance, approved by the representative body of the municipality – the Sakrebulo, for the purpose of performing the functions and obligations of the municipality's bodies;

h¹) consolidated municipal budget – the consolidated budget of the municipality budget and the budgets of the legal entities provided for by subparagraphs „b1.c“, „b2.c“ and „b3 . c“ of this article. The consolidated municipal budget shall not be subject to approval by the representative body of any authority;

i) approved budget – the state, republican budget of the Autonomous Republic or municipal budget approved by the representative body of the respective authority;

j) adjusted budget – the state, republican budget of the Autonomous Republic or municipal budget adjusted on the basis of Articles 31, 69 and 92 of this Code;

j¹) approved budget of a Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity – the budget provided for by subparagraph „c1“ of this article, which is approved in accordance with the procedure established by the legislation of Georgia;

j²) adjusted budget of a Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity – the budget of the Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity provided for by subparagraph „j1“ of this article, adjusted on the basis of Articles 31, 69 and 92 of this Code;

k) assignment – the authority to make payments during the budget year within the amount provided for by the budget;

l) budget schedule – the monthly and/or quarterly distribution of budget receipts, payments and changes in the balance according to the budget classification (except for the functional classification of expenditures and operations on non-financial assets);

m) municipality, own and delegated powers – corresponds to the definitions given in the Organic Law of Georgia „Local Self-Government Code“;

n) (removed – 14.12.2018, No. 4017);

o) targeted transfer – funds received by the municipality budget from the state budget and/or the republican budget of the Autonomous Republic in the form of financial assistance for the purpose of exercising delegated powers;

p) special transfer – financial assistance provided between the state, the republican budget of the Autonomous Republic and municipal budgets for the liquidation of the consequences (damage) of natural phenomena, ecological and other types of disasters, military operations, epidemics and other emergency situations, as well as for the implementation of other measures;

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

q) Spending institution – for the state and autonomous republic republican budgets – a budgetary organization provided for by the first rank of the programme classification, and for the municipal budget – the municipality;

r) Budgetary organization – an organization founded by the central, autonomous republic, local government of Georgia and/or accountable to it/subordinate to its control, as well as another legal entity of public law/non-entrepreneurial (non-commercial) legal entity (if it exists), if it is an organization authorized to dispose of appropriations within the framework of a programme/subprogramme defined by the budget of the corresponding level. When calculating the debt of the Government of Georgia, an enterprise attributed to the government sector is a budgetary organization;

s) State Treasury – a state sub-agency institution of the Ministry of Finance of Georgia – the Treasury Service;

t) Financial body – the respective body of the executive authority of a municipality, autonomous republic, which is responsible for the preparation of the draft budget of the municipality, the draft republican budget of the autonomous republic, respectively, and for the management and coordination of budget execution;

u) Budget year – calendar year;

v) Annual budget – the budget approved by the representative body of the central, autonomous republic, municipality of Georgia, the approved budget for the corresponding budget year of a legal entity of public law/non-entrepreneurial (non-commercial) legal entity provided for by this Code in accordance with the procedure established by the legislation of Georgia, as well as the budget of a state enterprise attributed to the government sector;

w) Balance – the cash funds available in the account of the corresponding budget for the corresponding period;

x) Free balance – the part of the balance that is not allocated for any purposes;

y) Change in balance – the use or accumulation of cash funds available in the account of the corresponding budget for the corresponding period;

z) Cash funds – the cash funds and deposits in national and foreign currencies of the State Treasury, autonomous republics, municipalities, legal entities provided for by subparagraphs „b1“, „b2“ and „b3“ of this article, which are placed in the accounts of the single account system of the State Treasury, other accounts of the State Treasury and accounts in commercial banks and microbanks;

aa) Movement of cash funds – the receipt and outflow of cash funds provided for by subparagraph „z“ of this article to and from the accounts provided for by the same subparagraph;

bb) Assumption of an obligation to pay – registration by a budgetary organization, in accordance with the established procedure, in the State Treasury of an obligation in respect of payments to be made during the budgetary year;

cc) Assumption of a financial obligation – assumption by a budgetary organization of an obligation for the disbursement of funds from the budget in the future;

cc¹) Priority − the main direction of the assignments provided for by the budgets of the State of Georgia, the autonomous republics' republican budgets and the municipality budget, within the framework of which spending institutions/budgetary organizations implement programmes/subprogrammes. Within the framework of a priority, measures necessary for the functioning of various budgetary organizations may also be provided for;

dd) Programme − a set of measures to be implemented in order to achieve the objectives of the priorities determined by the budget, which are grouped according to similar content, are implemented to achieve a single final result and for the implementation of which one spending institution is responsible;

ee) Subprogramme − a set of measures to be implemented by a budgetary organization within the framework of a spending institution's programme.

Law of Georgia No. 5172 of 28 October 2011 - website, 07.11.2011.

Law of Georgia No. 117 of 20 December 2012 - website, 29.12.2012.

Law of Georgia No. 1959 of 5 February 2014 - website, 19.02.2014.

Law of Georgia No. 2588 of 30 July 2014 - website, 11.08.2014.

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, 28.07.2020.

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

Law of Georgia No. 2625 of 22 February 2023 – website, 10.03.2023.

Article 7. Powers and Responsibilities of Participants in the Budget Process🔗

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

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

b) for the republican budget of the Autonomous Republic – the supreme executive body of the respective Autonomous Republic;

c) for the budget of the municipality – the executive body of the respective municipality;

d) for the budget of a Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity provided for by this Code – the body determined by the legislation of Georgia;

e) for the budget of a state enterprise assigned to the government sector provided for by this Code – the respective state enterprise.

2. The following shall be authorized to consider and approve the draft budget and to exercise control over the budget:

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

b) for the republican budget of the Autonomous Republic – the supreme representative body of the respective Autonomous Republic;

c) for the budget of the municipality – the representative body of the respective municipality – the Sakrebulo;

d) for the budget of a Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity provided for by this Code – the body determined by the legislation of Georgia.

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

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

b) for the consolidated budget of the Autonomous Republic, the unified republican budget of the Autonomous Republic and the unified budget of the Autonomous Republic – the financial body of the respective Autonomous Republic;

c) for the unified municipal budget – the financial body of the respective municipality.

4. For the purpose of ensuring the unity of the budget process at all levels of the budget system of Georgia and compliance with this Code, the Minister of Finance of Georgia shall issue appropriate legal acts.

5. The regulations determined by this Code and other legislative acts of Georgia for Legal Entities of Public Law shall apply to relations related to the budget process of non-entrepreneurial (non-commercial) legal entities provided for by subparagraph “b 2” of Article 6 of this Code, including the provisions related to the following measures:

a) taking out a loan and suretyship;

b) determination of the budget, the payroll and the wage fund;

c) accounting, reporting and maintenance of the balance sheet for financial and economic activity.

6. In relations related to the budget process, including in connection with procurement procedures, funds allocated from the respective budget shall be considered as funds received from this source until they pass into economic activity and/or households, regardless of the status of the legal entity ultimately managing them.

7. Receipts, payments and changes in the balance of all budget organizations shall be recorded through the unified account of the State Treasury, regardless of the source of their origin, except for cases determined by this Code.

8. The financial bodies of the autonomous republics, the financial bodies of the municipalities, and the Legal Entities of Public Law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs “b1” and “b2” of Article 6 of this Code:

a) are entitled, for the purpose of receiving additional income, to open current accounts and/or deposit accounts in commercial banks and microbanks. It shall be inadmissible for the account holder to perform other operations on the current account, except for the transfer of funds from an account opened in the State Treasury, the return of funds to an account opened in the State Treasury, the transfer of money to a deposit account, and the return of money from a deposit account. The Legal Entities of Public Law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs “b1” and “b2” of Article 6 of this Code are also entitled to use the funds in these accounts as security for bank guarantees, loans and letters of credit for the purpose of carrying out economic activity;

b) are entitled, with the consent of the Ministry of Finance of Georgia, to open accounts in commercial banks and microbanks for the purpose of placing funds temporarily at their disposal and/or those funds which, before being recognized as income, require confirmation by authorized persons and which, in accordance with the legislation of Georgia, may be transferred to persons entitled to receive the money, directed to the relevant budget or to the account of the holder of the relevant account in the State Treasury, or returned to the payer. Amounts accrued as interest on this account belong to the account holder and, upon accrual, are directed to its account in the State Treasury.

9. Amounts debited from the accounts provided for by subparagraph “a” of paragraph 8 of this Article as a result of the activation of bank guarantees, as well as in the cases determined by the legislation of Georgia, in accordance with a claim submitted by a third party, shall be recorded by the State Treasury and reflected in the reporting in accordance with the procedure approved by the Minister of Finance of Georgia.

10. A rule different from that provided for by this Code may be applied to the legal entities provided for by subparagraphs “b1” and “b2” of Article 6 of this Code, if this follows from the international treaties of Georgia.

11. The accounts of the Legal Entities of Public Law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs “b1” and “b2” of Article 6 of this Code are opened in the single account system of the State Treasury. The right to control the management and operation of these accounts, as well as to grant permission for the transfer of money from these accounts, except for exceptional cases provided for by the legislation of Georgia, shall be held only by the respective legal entity. It shall be inadmissible for these legal entities to restrict payments to be made in accordance with the procedure established by the legislation of Georgia within the limits of the funds in their accounts in the single account system of the State Treasury.

11¹. The State Treasury shall be entitled, in the process of compulsory enforcement of the obligations imposed by court judgments on legal entities of public law and non-entrepreneurial (non-commercial) legal entities as provided for by subparagraphs „b 1“ and „b 2“ of Article 6 of this Code, by the National Bureau of Enforcement — a legal entity of public law, to reflect in the budget of the corresponding level, from the programme code provided for the covering of debts incurred in previous years for this purpose and for the Fund for the Enforcement of Court Judgments, the amounts deducted from the single account of the State Treasury, if the said budgetary organizations do not have the corresponding balance in their accounts.

12. The relevant modules of the State 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, 28.07.2020.

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

Law of Georgia No. 2625 of 22 February 2023 – website, 10.03.2023.

Article 8. Budgetary Classification of Georgia🔗

1. The budgetary classification includes the economic classification of revenues and expenditures, the functional classification of expenditures and operations with non-financial assets, the classifications of non-financial assets and operations thereon, of financial assets and liabilities and operations thereon, as well as the programme classification. The programme classification is a set of priorities, programmes/subprogrammes and is determined by the budget. For the state budget of Georgia and the republican budgets of the autonomous republics, the programme classification also includes spending institutions and, accordingly, payments of common state importance and of common republican importance.

2. The budgetary classification, except for the programme classification, shall be approved by the Minister of Finance of Georgia on the basis of consultations with the State Audit Office and agreement with the Finance and Budget Committee of the Parliament of Georgia.

Law of Georgia No. 5172 of 28 October 2011 – website, 07.11.2011.

Law of Georgia No. 6550 of 22 June 2012 – website, 29.06.2012.

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

Article 9. Programme Budget🔗

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

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

3. The methodology required for drafting 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 managing investment/capital projects shall be approved by the Government of Georgia.

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

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

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

Article 10. Budget Receipts🔗

Budget receipts are the aggregate of monetary funds received in the budget during the reporting period:

a) revenues;

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

c) financial assets (funds received from operations with financial assets, except for the use of balances);

d) liabilities (funds received as a result of incurring liabilities).

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

Article 11. Budget Expenditures🔗

Budget expenditures are the aggregate of monetary funds to be paid from the budget during the reporting period:

a) expenses;

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

c) financial assets (funds allocated for operations with financial assets, except for the accumulation of balances);

d) liabilities (funds allocated for repayment of the principal part of liabilities).

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

Article 12. Budget Surplus and Deficit🔗

1. The difference between budget revenues and expenses is the budget operating balance, while the difference between the budget operating balance and the change in non-financial assets is the budget overall balance.

2. A positive overall balance is a budget surplus, while a negative overall balance is a budget deficit.

Article 13. Assignments in case of non-approval of the budget🔗

1. In case of non-approval of the state and autonomous republics' republican budgets before the beginning of the budget year, before the approval of the respective budget, for the state budget the Minister of Finance of Georgia, and for the republican budget of an autonomous republic – the executive body of the respective autonomous republic, shall be entitled to issue monthly to spending institutions amounts not exceeding 1/12 of the approved assignments of the previous budget year.

2. In case of non-approval of a municipality's budget before the beginning of the planned budget year, the executive body of the respective municipality shall be entitled to issue monthly for each priority amounts not exceeding 1/12 of the approved assignments of the previous budget year.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 14. Methodology of accounting and reporting and responsibility🔗

1. The Minister of Finance of Georgia, taking into account international standards, issues relevant normative acts which ensure compliance by the budget organizations of the central, autonomous republics and local authorities of Georgia with standard accounting procedures and reporting requirements.

2. The central, autonomous republics and local authorities of Georgia are responsible for the accounting and control of revenues, expenditures and changes in balance and for their compliance with the normative acts issued by the Minister of Finance of Georgia.

3. The Ministry of Finance of Georgia is responsible for the accounting of budget revenues, expenditures and changes in balance, as well as of operations related to state debt and other operations assigned by the legislation of Georgia.

Law of Georgia of 20 December 2012 No. 117 - website, 29.12.2012.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Article 15. Methodology for Preparing the Budget Execution Report🔗

1. The spending institutions of the State Budget shall prepare the 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 organizations of a municipality (except the Municipality of the City of Tbilisi) shall prepare the 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, while the budgetary organizations of the Municipality of the City of Tbilisi – in accordance with the procedure established by the respective authorized 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 the budget execution report in accordance with the procedure established by the respective authorized body of the autonomous republic, taking into account the requirements of Articles 108, 109 and 110 of this Code.

4. The state enterprise assigned to the government sector as provided for by subparagraph „b3“ of Article 6 of this Code shall prepare the budget execution report on the basis of a legal act issued by the Minister of Finance of Georgia.

Law of Georgia of 12 December 2014 No. 2935 – website, 24 December 2014.

Law of Georgia of 15 July 2020 No. 6946 – website, 28 July 2020.

Law of Georgia of 15 December 2022 No. 2384 – website, 23 December 2022.

Article 16. Cash Execution of the Budget🔗

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

2. The authority to issue appropriations provided for by the respective budget shall terminate at 24:00 on 31 December of the current budget year.

3. (Repealed – 12.12.2014, No. 2935).

Law of Georgia of 12 December 2014 No. 2935 – website, 24 December 2014.

Law of Georgia of 15 July 2020 No. 6946 – website, 28 July 2020.

Article 17. Execution of Budget Revenues🔗

1. Responsible agencies shall ensure the full and timely mobilization of targeted revenues into the budget in accordance with the legislation of Georgia.

2. Revenues approved by the annual budget are a forecast and do not restrict actual collection in excess of the indicators.

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

Law of Georgia of 12 December 2014 No. 2935 – website, 24 December 2014.

Law of Georgia of 15 July 2020 No. 6946 – website, 28 July 2020.

Article 18. Execution of budget expenditures🔗

1. Assumption of an obligation for payment in excess of the appropriations provided for by the respective adjusted budget shall be inadmissible.

2. The powers of a budgetary organization to assume an obligation for payment and to effect payment shall be determined by rules issued by the Minister of Finance of Georgia in compliance with the requirements of this Code.

3. Assumption of a financial obligation in excess of appropriations shall be inadmissible, except for obligations assumed under international treaties of Georgia and multi-year procurements. A multi-year financial obligation may be assumed only within the limits of the maximum volumes of appropriations provided for the respective medium-term plan for a spending institution/priority. In such case, the funds necessary for the performance of the multi-year financial obligation shall be provided for in the draft budget of the respective year by the spending institutions of the state budget and of the autonomous republic, and by the executive body of the municipality — in the respective priority. By decision of the respective executive authority, a multi-year financial obligation differing from the parameters provided for by the relevant medium-term plan may be assumed.

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

Law of Georgia No. 6946 of 15 July 2020 – website, 28.07.2020

Article 18¹. Return of an amount overpaid or erroneously paid into budget revenue and its transfer to another tax payment account🔗

1. The rule for the return of an amount overpaid or erroneously paid into budget revenue to the single account of the State Treasury and for the transfer of revenue to another type, as well as for the return of value added tax paid by a citizen of a foreign country on goods purchased in Georgia, shall be determined by an Order of the Minister of Finance of Georgia.

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

3. When accounting and reporting the execution of budget revenue, adjustment shall be made by the amount of the overpaid or erroneously paid revenue returned or transferred to another type of revenue.

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

Article 18². Performance of a tax and/or other obligation by another person🔗

A tax and/or other obligation payable to the budget, determined by the legislation of Georgia, of a taxpayer/person may be performed by another person in accordance with the procedure specially determined by the National Bank of Georgia, for which purpose he/she submits to the body receiving the tax and/or payment a document and/or paper confirming payment of the tax and/or payment provided for by the legislation of Georgia or established in accordance with the procedure determined by the Minister of Finance of Georgia. At the same time, confirmation of payment of the tax and/or payment may be effected in electronic form, in accordance with the procedure established by the Minister of Finance of Georgia. A performed tax and/or other obligation shall not be returned to the third person.

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

Article 18³. Management and issuance of money🔗

1. To finance the payables of budgetary organizations, money shall be issued from the single account of the State Treasury in accordance with the budget assignments.

2. It is inadmissible to issue money from the single account of the State Treasury to finance the payables of budgetary organizations in excess of the indicators established by the budget assignments.

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

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

Article 18⁴. State Treasury🔗

1. The State Treasury shall be responsible for the complete and accurate accounting, transparency and reporting of the revenues, expenditures and changes in balances of the state budget, the republican budgets of the autonomous republics and the budgets of municipalities, as well as of the legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by this Code.

2. The State Treasury has a single account opened with the National Bank of Georgia. The State Treasury is entitled to open additional accounts in other banks.

3. The right to control the management and operation of the single account and other accounts of the State Treasury, as well as to grant permission for the write-off of funds from these accounts, except for exceptional cases provided for by Georgian legislation, shall be vested only in the State Treasury.

4. The funds at the disposal of the State Treasury shall be kept in the single account of the State Treasury, as well as in other accounts of the State Treasury.

5. At the end of each month, the State Treasury shall prepare a report on the movement of funds.

6. Without the consent of the State Treasury, the opening of a bank account of a budgetary organization shall be prohibited, except for the cases provided for by Article 7 of this Code. The State Treasury is entitled to revoke the permission to open a bank account and to close the account. A budgetary organization shall ensure the complete and immediate accounting of all revenues received by it in the single account of the State Treasury, unless otherwise provided by this Code.

7. The State Treasury is entitled to use electronic documents in its activities.

8. A budgetary organization is entitled to store in the form of an electronic copy and/or print any document submitted electronically to the State Treasury and confirmed by the State Treasury's electronic service system.

9. The security norms, rules and terms of service of the State Treasury's electronic service system shall be determined by an order of the Minister of Finance of Georgia.

10. The State Treasury is entitled, for the purpose of receiving additional budgetary revenues, to place the funds at its disposal in accordance with the procedure approved by the Government of Georgia.

11. The State Treasury is entitled, on the basis of an agreement, to provide services to an enterprise in which the State has a shareholding.

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

Law of Georgia No. 660 of 21 April 2017 – website, 10.05.2017.

Law of Georgia No. 6946 of 15 July 2020 – website, 28.07.2020.

Article 19. Verification by the State Audit Office of budget execution and spending of budget appropriations🔗

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

Law of Georgia of 22 June 2012 No. 6550 – website, 29.06.2012.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 20. Compliance of legal acts with budget parameters🔗

1. A draft law that causes an increase in the expenditures of the current year's State Budget, a decrease in revenues or the assumption of new financial obligations by the State may be adopted by the Parliament of Georgia only after the consent of the Government of Georgia, while the above-mentioned draft law related to the next budget year – within the framework of the document of the country's main data and directions submitted by the Government to the Parliament of Georgia or with the consent of the Government of Georgia.

2. The representative body of an autonomous republic/municipality may adopt a draft legal act that causes an increase in the expenditures of the current year's republican budget of the autonomous republic and the budget of the municipality, a decrease in revenues and/or the assumption of new financial obligations by a body of the autonomous republic/municipality only after the consent of the respective executive authority. A draft legal act of the representative body of an autonomous republic/municipality − the Sakrebulo − related to the next budget year shall comply with the budget parameters of the planned budget year, and if it causes a change in the budget parameters of future years, it may be adopted only with the consent of the respective government of the autonomous republic/executive body of the municipality.

3. The adoption by the supreme body of State authority of Georgia, a body of State authority of an autonomous republic of a decision that increases the amount of payments from the municipality's budget or decreases its revenues shall, during the year of adoption of this decision, be compensated by the body receiving it (from the State or the republican budget of the autonomous republic).

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 21. Authority to borrow loans and issue State guarantees🔗

1. State borrowing and the issuance of State guarantees may be carried out only by the Ministry of Finance of Georgia, in accordance with the procedure established by the legislation of Georgia.

2. The autonomous republics and local authorities shall have the right to borrow from the Government of Georgia and/or from other sources only with the permission of the Government of Georgia.

Article 22. Limits of State Debt and State Guarantees🔗

1. The annual budget establishes limits on the total amount of state debt that may remain uncovered by the end of the budget year. Limits are established separately for domestic and external debts. A loan taken from the National Bank of Georgia is subject to separate limitation.

2. The annual budget law establishes limits on state external and internal loan guarantees that may be issued during the planned budget year.

3. The Ministry of Finance of Georgia is responsible for the management of state debt and other matters related thereto.

Article 23. Procedures for Taking 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, in accordance with the procedure established by the legislation of Georgia, adopts a decision on taking state debt and issuing state guarantees.

2. The Ministry of Finance of Georgia is entitled, in accordance with the procedure established by the legislation of Georgia, pursuant to the Law of Georgia "On State Debt", to take a loan in any form acceptable to its recipient and its lender. The Ministry of Finance of Georgia is free in choosing the type of financial instrument, including its characteristics and conditions. Within the interests of monetary policy, the Ministry of Finance of Georgia acts 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 a written agreement concluded between the Ministry of Finance of Georgia and the National Bank of Georgia, the National Bank of Georgia ensures the execution of the relevant decision on state debt.

Article 24. Authority to Grant a Loan🔗

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

2. Granting a loan from the republican budgets of autonomous republics and municipal budgets is possible only with the consent of the Ministry of Finance of Georgia.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 25. Rule for the distribution of revenues among budgets🔗

1. Revenues shall be distributed among the state budget, the republican budgets of the Autonomous Republics of Abkhazia and Adjara and the budgets of municipalities in accordance with the annex to this Code. The list of matters of common state importance and of state property indicated in this annex shall be established by the Ministry of Economy and Sustainable Development of Georgia.

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

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

4. Within the funds allocated from the state, republican budget of an autonomous republic and municipal budgets, fines/sanctions/penalties and other revenues imposed on contractors in the course of the performance of activities by budgetary organizations shall be directed to the respective budget (state, republican budget of an autonomous republic or municipal budget). Fines/sanctions/penalties imposed on contractors in the course of the performance of activities within the framework of funding received from a donor in accordance with the legislation of Georgia shall also be directed to the respective budget, unless otherwise determined by a contract concluded with the 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, 28.07.2020

Article 26. Distribution of budget revenues received from abolished taxes🔗

Budget revenues received from taxes abolished by the tax legislation of Georgia shall be distributed as follows:

a) The following budget revenues received from the following abolished taxes shall be directed in full to the State Budget:

a.a) fixed tax on the import of light automobiles;

a.b) tax on owners of motor vehicles;

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

a.d) tax for the entry of motor vehicles into the territory of Georgia and for above-norm load;

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

a.f) social tax;

b) The following budget revenues received from the following abolished taxes shall be directed in full to the republican and municipal budgets of the Autonomous Republics of Abkhazia and Adjara:

b.a) tax for environmental pollution with harmful substances;

b.b) tax for the use of natural resources;

b.c) tax for the transfer of property;

b.d) resort tax;

b.e) hotel tax;

b.f) advertising tax;

b.g) tax for the use of local symbols;

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 26¹. Distribution and use of the net profit of enterprises operating with state share participation🔗

1. Proposals on the distribution and use of the net profit of enterprises operating with state share participation shall be considered and a decision (except for a decision adopted by the Government of Georgia and the case provided for by paragraph 5 of this article) shall be taken by a commission, whose composition and rules of operation shall be determined by a Resolution of the Government of Georgia.

2. Dividends from the net profit of enterprises operating with state share participation that are to be transferred to the state, as determined by the commission provided for by paragraph 1 of this article, shall, in accordance with column 9.1 of the table of the annex to this Code ("Distribution of revenues between the State, the republican budgets of the Autonomous Republics of Abkhazia and Adjara and the budgets of municipalities according to percentage indicators"), be directed in full to the State Budget of Georgia.

3. The commission provided for by paragraph 1 of this article shall be entitled to take a decision on the purpose of spending the funds left to an enterprise out of the net profit of an enterprise operating with state share participation.

4. The Government of Georgia shall be entitled to take a decision on the distribution and use of the net profit of enterprises operating with state share participation and on directing it in a manner different from the rule provided for by paragraph 2 of this article.

5. A decision on the distribution and use of the net profit of an enterprise operating with state share participation whose shares are listed on a recognized stock exchange of a foreign country shall be taken in accordance with the procedure established by the Law of Georgia "On Entrepreneurs". At the same time, the Government of Georgia shall be entitled to take a decision on directing the dividends to be transferred to the state from the net profit of the said enterprise in a manner different from the rule provided for by paragraph 2 of this article.

Law of Georgia of 22 February 2011 No. 4210 – website, 10.03.2011.

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

Law of Georgia of 25 May 2012 No. 6331 – website, 12.06.2012.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 27. Payments of common-state importance🔗

1. Payments of common-state importance are the assignment provided in the annual budget under the first-rank code, which includes as separate codes:

a) servicing and repayment of external state obligations;

b) servicing and repayment of domestic state obligations;

c) the Reserve Fund of the President of Georgia;

d) the Reserve Fund of the Government of Georgia;

e) the Fund for projects to be implemented in the regions of Georgia;

f) the Fund for repayment of debts arising in previous years and enforcement of court judgments;

g) transfers to be transferred to autonomous republics and municipalities.

2. Other categories of payments of common-state importance may be determined by the annual budget.

3. In addition to the funds provided by this Chapter, the administrator of other payments of common-state importance shall be determined by the annual budget.

Law of Georgia of 28 October 2011 No. 5172 - website, 07.11.2011.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 28. Reserve funds of the state budget🔗

1. The Reserve Fund of the President of Georgia and the Reserve Fund of the Government of Georgia shall be established in the state budget. The volume of both these reserve funds, taken together, shall not exceed 1% of the total amount of assignments provided by the annual budget. In accordance with the procedure established by this Code, the total volume of the 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 provided for by the state budget. The directions of expenditure of the state budget reserve funds shall be determined respectively by the President of Georgia and the Government of Georgia according to the volume determined by the specified budget.

3. Funds from the Reserve Funds of the President of Georgia and the Government of Georgia shall be allocated by the Ministry of Finance of Georgia on the basis of the respective decision of the President of Georgia and the Government of Georgia, which includes information on the amount and purpose 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, upon the submission of the Minister of Finance of Georgia, the Prime Minister of Georgia is entitled to take a decision on the allocation of the amount.

Law of Georgia of 18 June 2010 No. 3114 - LHG I, No. 2922.06.2010, Art. 189

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

Article 29. Fund for Projects to Be Implemented in the Regions of Georgia🔗

1. A Fund for Projects to Be Implemented in the Regions of Georgia shall be established in the State Budget, the administration of which shall be carried out in accordance with a decision adopted by the Government of Georgia.

2. Funds from the Fund for Projects to Be Implemented in the Regions of Georgia shall be allocated by the Ministry of Finance of Georgia on the basis of a relevant decision of the Government of Georgia.

3. The amount of the Fund for Projects to Be Implemented in the Regions of Georgia shall be determined by the annual budget.

4. If the amount to be allocated from the Fund for Projects to Be Implemented in the Regions of Georgia does not exceed GEL 100,000, upon the submission of the Minister of Finance of Georgia, the Prime Minister of Georgia shall be entitled to adopt a decision on the allocation of the amount.

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 2922.06.2010, Art. 189

Article 30. Fund for the Repayment of Debts Arising in Previous Years and the Enforcement of Court Judgments🔗

1. A Fund for the Repayment of Debts Arising in Previous Years and the Enforcement of Court Judgments shall be established in the State Budget, the administration 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. Funds from the Fund for the Repayment of Debts Arising in Previous Years and the Enforcement of Court Judgments shall be allocated by the Ministry of Finance of Georgia on the basis of a relevant decision of the Government of Georgia.

3. The amount of the Fund for the Repayment of Debts Arising in Previous Years and the Enforcement of Court Judgments shall be determined by the annual budget.

4. If the amount to be allocated from the Fund for the Repayment of Debts Arising in Previous Years and the Enforcement of Court Judgments does not exceed GEL 100,000, upon the submission of the Minister of Finance of Georgia, the Prime Minister of Georgia shall be entitled to adopt a decision on the allocation of the amount.

Law of Georgia No 3114 of 18 June 2010 – LHG I, No 2922.06.2010, Art. 189

Article 31. Reallocation of budget appropriations and amendments to the programme classification🔗

1. Reallocation of appropriations from one spending institution to another spending institution may be carried out only by introducing amendments to the annual budget law.

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

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

4. On the basis of a proposal submitted by spending institutions and a decision adopted by the Government of Georgia, funds from the appropriations allocated to spending institutions may be reallocated to payments of common state importance, if the reallocated funds do not exceed 2% of the appropriations approved by the annual budget for payments of common state importance. The Ministry of Finance of Georgia shall notify the Finance and Budget Committee of the Parliament of Georgia about the said reallocation.

5. On the basis of the relevant legal act and proposals submitted by a spending institution, the Minister of Finance of Georgia is authorised to make amendments (addition of a programme/subprogramme, change of the name of a programme/subprogramme) to the programme classification.

6. Adjustment of the annual budget through the reallocation of appropriations for payments of common state importance and the amendments provided for by paragraphs 2–5 of this article shall be carried out 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 adjusting the budgets of the Legal Entities of Public Law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs „b 1.a“ and „b 2.a“ of Article 6 of this Code, in the part of other revenues (non-budgetary funds) permitted by the legislation of Georgia. This procedure establishes only the procedural matters of budget adjustment, while the decision on the adjustment of the budget shall be taken by the relevant legal entity itself in accordance with the procedure established by the legislation of Georgia, in agreement with the body exercising control (if such an obligation exists).

7. If the introduction of amendments to the state procurement plan of a budgetary organisation financed from the state budget causes the reallocation of appropriations provided for by the adjusted budget, the budgetary organisation shall, before introducing amendments to the state procurement plan, carry out the reallocation of funds between the relevant programmes, subprogrammes and articles of the budget classification in accordance with the procedure established by this article.

[7. If the introduction of amendments to the public procurement plan of a budgetary organisation financed from the State Budget results in the redistribution of the assignments provided for by the adjusted budget, that budgetary organisation shall, before introducing amendments to the public procurement plan, redistribute the funds among the respective programmes, subprogrammes and articles of the budget classification in accordance with the procedure established by this Article. (Shall enter into force on 1 January 2027)]

Law of Georgia of 18 June 2010 No 3114 – LHG I, No 2922.06.2010, Art. 189

Law of Georgia of 22 February 2011 No 4210 – website, 10.03.2011

Law of Georgia of 28 October 2011 No 5172 – website, 07.11.2011

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

Law of Georgia of 9 February 2023 No 2576 – website, 27.02.2023

Law of Georgia of 5 September 2024 No 4425 – website, 23.09.2024

Article 32. Emergency Budget🔗

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

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

Law of Georgia of 20 November 2013 No 1599 – website, 03.12.2013

Article 33. Coordination of the Process of Preparation and Submission of the Draft State Budget🔗

The Ministry of Finance of Georgia shall coordinate and be responsible for the process of preparation and submission of the draft State Budget.

Article 34. Basic Data and Directions Document of the Country🔗

1. The Basic Data and Directions Document of the Country is the main plan for the country's development, which reflects information on medium-term macroeconomic and fiscal forecasts, as well as information on the main directions of development of the central authorities, autonomous republics and local authorities of Georgia.

2. The Ministry of Finance of Georgia shall ensure the preparation of the Basic Data and Directions Document of the Country in coordination with the National Bank of Georgia, state representatives in administrative-territorial units, authorities of the autonomous republics, local authorities and spending institutions determined by the Government of Georgia, for which the above-mentioned officials and bodies are obliged to submit the requested information to the Ministry of Finance of Georgia.

3. For the purpose of preparing the Basic Data and Directions Document of the Country, by 1 March of each year, the Government of Georgia shall determine by resolution the list of information to be submitted and the deadlines for its submission by spending institutions, authorities of the autonomous republics, municipalities (except for municipalities included in the autonomous republics) and state enterprises assigned to the government sector.

4. For the purpose of agreeing the Basic Data and Directions with the committees of the Parliament of Georgia, the Government of Georgia shall, by 1 June of each year, submit to the Parliament of Georgia information on the main macroeconomic forecasts and the main directions of the ministries of Georgia. The conclusions of the committees of the Parliament of Georgia on the said information shall be sent to the Government of Georgia no later than 20 June. The ministries of Georgia shall, by 30 June of each year, approve their medium-term action plans, which include priorities and the programmes and measures to be implemented to achieve them.

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

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

a.a) forecasts of the main 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 unified state budget, the consolidated budget of Georgia and state budgets;

b) an analysis of the final results of the execution of the state budget of the past budget year and the revised forecasts for the current budget year;

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

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

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

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

c.d) aggregated indicators on the indicative ceiling volume of the allocations provided for each spending institution of the State Budget;

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

d) the indicative ceiling number of employees for the budget year to be planned, by spending institutions;

e) the main fiscal indicators projected within the limits of the ceiling volumes of the fiscal rules determined by the Organic Law of Georgia on Economic Freedom.

6. The Government of Georgia shall approve, not later than 10 July, the first version of the document of the country's main data and directions (except for the information provided for by subparagraph „c.c“ of paragraph 5 of this Article).

7. The document of the country's main data and directions (except for the information provided for by subparagraph „c.c“ of paragraph 5 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 mutual consistency of the draft law on the State Budget and the document of the country's main data and directions. 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 of the country's main data and directions and the law on the State Budget.

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

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

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

Law of Georgia of 20 September 2018 No. 3461 – website, 09.10.2018.

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

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

Article 35. Budgetary application and ceiling amounts🔗

1. No later than 5 days after the Government of Georgia approves the country's Basic Data and Directions document, the Ministry of Finance of Georgia shall ensure the provision to spending institutions, through the electronic budget management system, of budgetary application forms, using which the spending institutions shall submit electronically to the Ministry of Finance of Georgia information on the budgets of future years.

2. The information on the budgets of future years submitted by the spending institutions to the Ministry of Finance of Georgia shall correspond to the ceiling amounts of staff and appropriations determined for the spending institutions by the country's Basic Data and Directions document.

3. The budgetary application, in the manner provided by paragraph 1 of this Article, shall be submitted to the Ministry of Finance of Georgia by the legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided by subparagraphs „b 1.a“ and „b 2.a“ of Article 6 of this Code, which are not spending institutions of the state budget or budgetary organizations subordinate to their control.

Law of Georgia of 28 October 2011 No. 5172 - website, 07.11.2011.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Article 36. Submission of budget applications🔗

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

a) for the past, current and planned budget years:

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

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

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

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

a.e) information on the receipts to be received, the payments to be made and the change in the balance by the legal entity of public law/non-entrepreneurial (non-commercial) legal entity provided for by subparagraphs „b 1.a“ and „b 2.a“ of Article 6 of this Code, from any source permitted by the legislation of Georgia, according to the lowest rank of the budget classification (except the programme classification), as well as information on the approved number and the projected number of employees;

b) the programmes and subprogrammes to be implemented from the allocations provided for the spending institution for the planned budget year and the three budget years following the planned year, their funding, description, objectives, expected results and indicators for assessing their implementation;

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

1¹. The information provided for by subparagraph „a.e“ of paragraph 1 of this Article shall be submitted, within the time limit provided for by this Code for the submission of a budget application, by the legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by paragraph 3 of Article 35 of this Code.

2. Submission of a budget application by a spending institution in excess of the ceiling amounts provided for by subparagraphs „c.d“ and „d“ of paragraph 5 of Article 34 of this Code (if any) shall be permissible only in the electronic form of the budget application existing in the electronic budget management system.

3. If the information reflected in the budget application differs from the information provided for by subparagraphs „c.b“, „c.d“ and „d“ of paragraph 5 of Article 34 of this Code, the spending institution shall, together with the budget application, submit to the Ministry of Finance of Georgia, through the electronic budget management system, information on the reasons for such difference.

4. The Ministry of Finance of Georgia shall ensure the reflection, in the draft State Budget, of the allocations provided for payments of common state importance.

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

Law of Georgia of 12 December 2014 No. 2935 – website, 24 December 2014.

Law of Georgia of 15 December 2022 No. 2384 – website, 23 December 2022.

Article 37. Preparation of the Draft State Budget🔗

1. The Ministry of Finance of Georgia shall review the budget applications and submit the main parameters of the draft state budget to the Government of Georgia for consideration no later than 15 September.

2. The Ministry of Finance of Georgia shall submit to the Government of Georgia the draft state budget and the updated document of the country's main data and directions no later than 25 September.

3. In the course of implementing the measures provided for by paragraphs 1 and 2 of this article, in the event of disagreement between the Ministry of Finance of Georgia and a spending institution, the Ministry of Finance of Georgia shall be entitled to submit to the Government of Georgia its own version of the draft state budget, in relation to which the Government of Georgia shall take the final decision.

4. (Removed – 28 October 2011, No. 5172).

Law of Georgia of 28 October 2011 No. 5172 – website, 7 November 2011.

Article 38. Submission of the Draft State Budget and the Country's Basic Data and Directions Document to the Parliament of Georgia🔗

1. The Government of Georgia shall submit to the Parliament of Georgia, no later than 1 October, the draft State Budget together with the attached materials.

2. Together with the draft State Budget, the Country's Basic Data and Directions Document corresponding to the draft budget shall be submitted to the Parliament of Georgia for consideration.

3. The draft State Budget shall contain at least the following information:

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

b) the revenues of the State Budget, the change in the balance, and the amount of appropriations provided for each spending institution according to the following articles of the budget classification:

b.a) expenditures, including appropriations allocated for labour remuneration;

b.b) increase in non-financial assets;

b.c) increase in financial assets;

b.d) decrease in liabilities;

c) the amount of appropriations provided for spending institutions according to the functional classification of expenditures and transactions in non-financial assets;

d) the amount of the surplus or deficit of the State Budget;

d¹) the main fiscal indicators projected within the limits of the maximum amounts of fiscal rules determined by the Organic Law of Georgia “On Economic Freedom”;

e) the amount of appropriations of the State Budget according to the program classification;

f) the amount of payments of common state importance;

g) the maximum amount of the state debt and loans guaranteed by the state;

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

i) the priorities within the framework of which spending institutions implement programs/subprograms with State Budget funding, their description and objectives;

j) the percentage share of each municipality in the total amount of value added tax intended for municipalities.

4. The following shall be attached to the draft State Budget:

a) an explanatory note to the draft State Budget, which contains the following information:

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

a.b) forecasts of fiscal indicators and their description;

a.c) information on the main measures and programs financed by the State Budget;

b) a brief review of the execution of the State Budget of the current year;

c) a package of legislative amendments necessary for the entry into force of the annual budget law;

d) additional information on the programs/subprograms defined by the budget, their expected results and performance evaluation indicators;

e) information on changes in the receipts receivable from any source permitted by the legislation of Georgia, the payments to be made and the balance, by a Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity provided for by subparagraphs “b 1.a” and “b 2.a” of Article 6 of this Code;

e¹) information on changes in the receipts receivable from any source permitted by the legislation of Georgia, the payments to be made and the balance, by state enterprises assigned to the government sector as provided for by subparagraph “b3.a” of Article 6 of this Code;

f) information on fiscal risks;

g) information on the investment/capital projects selected and assessed in accordance with the criteria determined by the methodology provided for by paragraph 4 of Article 9 of this Code, for the commencement of which appropriations are provided for in the budget of the planned year and/or in the fiscal indicators of the three years following the planned year. The said information shall include the description, value, implementation timelines and expected results of the investment/capital project;

h) information on tax expenditures.

5. The information provided for in paragraph 3 of this Article, except for the information provided for by subparagraph “i” of the same paragraph, shall be submitted for the past, current and planned budget years.

6. The information provided for by subparagraph “i” of paragraph 3 of this Article shall be submitted for the planned budget year and the three budget years following the planned year.

7. The draft state budget with the attached materials and the document on the country's basic data and directions shall become available to the public immediately upon submission to the Parliament of Georgia.

8. The materials attached to the draft state budget, except for that provided for by subparagraph “c” of paragraph 4 of this Article, are of an informational nature only and shall not be approved by the Parliament of Georgia.

9. The budgets of the Legal Entities of Public Law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs “b 1.a” and “b 2.a” of Article 6 of this Code shall be approved in accordance with the procedure established by the legislation of Georgia.

Law of Georgia of 18 June 2010 No. 3114 – LHG I, No. 2922.06.2010, Art. 189

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011

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

Law of Georgia of 20 November 2013 No. 1599 – website, 03.12.2013

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

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

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

Article 39. Consideration 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 Basic Data and Directions document of the country, shall be considered by the committees and factions of the Parliament of Georgia. The conclusions of the committees shall be sent to the Finance and Budget Committee of the Parliament of Georgia.

2. During committee deliberations, the main parameters of the draft State Budget shall be presented by the Minister of Finance of Georgia or his/her Deputy, while information on the programmes and subprogrammes to be implemented within the allocations envisaged for the ministries by the draft State Budget and on their financing shall be presented by the respective Minister or his/her Deputy together with the Minister of Finance of Georgia or his/her Deputy.

3. The Parliament of Georgia shall send the conclusion of the Finance and Budget Committee of the Parliament of Georgia to the Government of Georgia no later than 22 October. A remark expressed on the Basic Data and Directions document of the country for the three budget years following the planning year shall be of a recommendatory nature.

4. The Government of Georgia shall re-submit to the Parliament of Georgia, no later than 5 November, the revised versions of the draft State Budget and the Basic Data and Directions document of the country, together with information on the status of consideration of the expressed remarks and proposals. The draft State Budget shall be considered at a plenary sitting.

5. At the plenary sitting, the Prime Minister of Georgia or any member of the Government of Georgia, under an assignment received by a respective act of the Prime Minister, shall present the draft annual budget law and the report on the brief review of the State Budget of the current year. 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 conclusion of the Finance and Budget Committee of the Parliament of Georgia, together with the transcript reflecting the remarks expressed during its consideration at the plenary sitting of the Parliament of Georgia, shall be sent to the Government of Georgia no later than 20 November.

7. The Government of Georgia shall submit to the Parliament of Georgia, no later than 30 November, the final version of the draft State Budget and the corresponding revised version of the Basic Data and Directions document of the country, together with information on the status of consideration of the remarks and proposals expressed at the plenary sitting.

8. The Parliament of Georgia shall vote on the draft Law on State Budget no later than the third Friday of December. The Law on State Budget shall be adopted by a majority of the full composition of the Parliament of Georgia, in one reading.

9. The draft State Budget adopted by the Parliament of Georgia must contain no less than the information provided for by subparagraphs “a”–“g” of paragraph 3 of Article 38 of this Code.

10. Amendments to the draft State Budget may be introduced in the Parliament of Georgia with the consent of the Government of Georgia. In such a case, the Government of Georgia shall submit to the Parliament of Georgia the corresponding amended draft law. Amendments to the draft State Budget may also be introduced at a plenary sitting of the Parliament during its consideration if the speaker agrees with the remark expressed.

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

12. In the event of the State Budget not being approved, expenditures shall be covered in accordance with 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 planned budget year, the Ministry of Finance of Georgia, on the basis of information received from municipalities and autonomous republics, shall ensure the preparation of the final version of the document on the country's basic data and directions and its submission to the Finance and Budget Committee of the Parliament of Georgia in the form of information.

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

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

Law of Georgia of 22 June 2012 No. 6550 – website, 29.06.2012.

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

Law of Georgia of 20 November 2013 No. 1599 – website, 03.12.2013.

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

Law of Georgia of 5 September 2018 No. 3381 – website, 24.09.2018.

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

Law of Georgia of 1 July 2020 No. 6701 – website, 07.07.2020.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 40. Introduction of amendments and/or additions to the annual budget law🔗

1. The introduction of amendments and/or additions to the assignments provided for by the annual budget, except for the procedure established by Article 31 of this Code, requires an amendment to the annual budget law. An amendment to the annual budget law shall be made in accordance with the procedure established by this Article, unless otherwise provided by Article 40¹ of this Code.

2. The materials attached to the draft law on the introduction of amendments and/or additions to the annual budget law shall contain updated medium-term macroeconomic and fiscal forecasts and information reflecting the content of the amendments and/or additions, except where their submission is not required by the content of the amendments and/or additions.

3. Within 10 days from the submission by the Government of Georgia to the Parliament of Georgia of the draft law on the introduction of an amendment to the Law on the State Budget, the Parliament of Georgia shall send to the Government of Georgia the opinion related to the draft law as provided for by the Rules of Procedure of the Parliament of Georgia.

4. The Government of Georgia shall submit to the Parliament of Georgia for consideration the revised version of the draft law on the introduction of amendments and/or additions to the Law on the State Budget no later than 5 days after its receipt. The draft shall be accompanied by information on the status of the consideration of the comments and proposals expressed.

5. The Parliament of Georgia shall consider the draft law on the introduction of an amendment to the Law on the State Budget at a plenary sitting no later than 7 days after the submission by the Government of Georgia of the revised version of the draft.

6. At the plenary sitting, the draft law on the introduction of an amendment to the annual budget law shall be presented by the Prime Minister of Georgia or a person determined by a relevant act of the Prime Minister. 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 draft law on the introduction of an amendment to the Law on the State Budget by a majority of its full composition, in a single reading.

8. If the Parliament of Georgia fails to adopt the draft law on the introduction of amendments and/or additions to the Law on the State Budget, the same version of the draft law on the introduction of amendments and/or additions to the Law on the State Budget or the draft revised by the conciliation commission of the Government of Georgia and the members of the Parliament of Georgia may be put to a vote again.

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

Law of Georgia of 22 June 2012 No. 6550 – website, 29.06.2012.

Law of Georgia of 5 September 2018 No. 3381 – website, 24.09.2018.

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

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

Article 40¹. Amendment of the Law on the State Budget in connection with the issuance of a guarantee provided for by the Organic Law of Georgia “On the National Bank of Georgia”/financing of the resolution process🔗

1. The Government of Georgia shall submit to the Parliament of Georgia for consideration a draft law on amending the Law on the State Budget in connection with the issuance of a guarantee provided for by the Organic Law of Georgia “On the National Bank of Georgia”/financing of the resolution process. The submitted draft law shall be considered by the Finance and Budget Committee of the Parliament of Georgia no later than 2 days after its receipt.

2. The draft law on amending the Law on the State Budget in connection with the issuance of a guarantee provided for by the Organic Law of Georgia “On the National Bank of Georgia”/financing of the resolution process shall be considered by the Parliament of Georgia at a plenary session no later than 5 days after the submission of the draft law by the Government of Georgia to the Parliament of Georgia.

3. At a plenary session of the Parliament of Georgia, the draft law on amending the annual budget law in connection with the issuance of a guarantee provided for by the Organic Law of Georgia “On the National Bank of Georgia”/financing of the resolution process shall be presented by the Prime Minister of Georgia or a person determined by a relevant act of the Prime Minister. The Parliament of Georgia shall also hear the reports of the National Bank of Georgia and the Finance and Budget Committee of the Parliament of Georgia.

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

Article 41. Parliament of Georgia and State Audit Office🔗

1. The Parliament of Georgia shall submit the draft budgets of the Parliament of Georgia and the State Audit Office to the Government of Georgia no later than 15 June.

2. The rule for the formation of 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. The reduction of the total volume of appropriations provided for by the items of the economic classification of expenditures for the Parliament of Georgia and the State Audit Office in the State Budget, as compared with the corresponding volume determined by the approved budgets of the previous and current years, shall be possible, respectively, 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 exercise without restriction the right established by Article 31 of this Code to reallocate the appropriations allocated to it.

Law of Georgia of 22 June 2012 No. 6550 - website, 29.06.2012.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Article 42. Constitutional and General Courts of Georgia🔗

The reduction of the total volume of appropriations provided for by the articles of the economic classification of expenditures for the Constitutional Court of Georgia and the general courts of Georgia in the State Budget, compared with 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, respectively.

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

Article 43. Prosecutor's Office of Georgia🔗

The reduction of the appropriations allocated to the Prosecutor's Office of Georgia in the State Budget, compared with the volume 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

The reduction of the total volume of appropriations provided for by the articles of the economic classification of expenditures for the Legal Aid Service, compared with 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 shall be financed from the State Budget for the planned budget year in accordance with the Law of Georgia on Broadcasting.

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

Article 45. Condition for Determining the Volume of Special Funding🔗

The volume determined by the articles of the economic classification of expenditures provided for by paragraph 3 of Article 41, and Articles 42 and 44 of this Code shall not take into account the expenditures provided for by the same articles of the economic classification for donor-funded projects and for the co-financing of and participation in these projects.

Law of Georgia No. 5172 of 28 October 2011 – website, 07.11.2011

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

Article 45¹. Financing of the Education Sector🔗

1. It shall be mandatory that the draft state budget be prepared and approved in such a way that, according to the functional classification of the consolidated budget of Georgia, the volume of financing of the education sector is not less than 6% of the projected nominal gross domestic product for the planned year.

2. Financing of the education sector in an amount less than that determined by paragraph 1 of this Article may be planned only in the cases provided for by paragraph 7 of Article 2 of the Organic Law of Georgia “On Economic Freedom”.

3. Restoration of financing of the education sector in the amount determined by paragraph 1 of this Article shall be mandatory from the year following the achievement of the parameters provided for by paragraph 1 of Article 2 of the Organic Law of Georgia “On Economic Freedom”.

Law of Georgia of 27 June 2019 No. 4862 – website, 04.07.2019.

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 planned budget year shall be financed in an amount not less than the amount of funds received in the state budget in the previous budget year in the cases provided for by the Law of Georgia “On Environmental Responsibility”.

Law of Georgia of 2 March 2021 No. 247 – website, 12.03.2021.

Article 46. Responsibility for the Execution of the State Budget🔗

1. Budgetary organizations shall be responsible for making payments in accordance with the appropriations and, within the scope of their competence, for mobilizing revenues.

2. The Minister of Finance of Georgia shall supervise the organization and management of the execution of the state budget.

3. The Parliament of Georgia shall be entitled to monitor, through the State Audit Office, the legality of the expenditure of state budget funds by the Government of Georgia.

Law of Georgia of 20 November 2013 No. 1599 - website, 03.12.2013.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Article 47. State Budget allocation schedule🔗

1. Within 5 working days from the publication of the Law on the State Budget, spending institutions shall submit to the Ministry of Finance of Georgia information on the quarterly and/or monthly indicative allocation schedule of the appropriations allocated to them under the State Budget.

2. The Ministry of Finance of Georgia shall review the submitted information and, taking into account the available resources, shall, not later than 15 days from the publication of the Law on the State Budget, adopt a decision on the quarterly and/or monthly allocation schedule of the State and consolidated budgets (in the tax part).

3. When drawing up the quarterly and/or monthly allocation schedule of the State Budget, for the purpose of financing appropriations, the free balance may be used, provided that the annual amount of the change in the balance provided for by the annual budget remains unchanged.

4. Making amendments and/or additions to the annual budget law requires the approval of a new allocation schedule or the introduction of amendments to the existing allocation schedule.

5. When submitting the information provided for by paragraph 1 of this Article, spending institutions shall, through the electronic budget management system, also submit information on other income permitted by the legislation of Georgia (except budgetary income) of the budgets of the Legal Entities of Public Law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs „b 1.a“ and „b 2.a“ of Article 6 of this Code that are subordinate to them and to their control, and on the payable expenditures to be incurred from these sources of income, which must correspond to the information provided for by subparagraph „e“ of paragraph 4 of Article 38 of this Code, submitted to the Parliament of Georgia within the period defined by paragraph 7 of Article 39 of this Code.

6. The Legal Entities of Public Law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs „b1.a“ and „b2.a“ of Article 6 of this Code that are not spending institutions of the State Budget or budgetary organizations subordinate to their control shall also submit the information provided for by paragraph 1 of this Article within the period provided for by this Article.

7. The correction of the budget allocation schedule of a Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity provided for by this Article shall be carried out in accordance with the established procedure, for the purpose of its compliance with the approved budget of the Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity and subsequent specification.

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

Article 48. (Deleted)🔗

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

Article 48¹ .🔗

(Deleted)

Law of Georgia of 8 May 2012 No. 6168 – website, 25.05.2012.

Law of Georgia of 28 June 2012 No. 6572 – website, 10.07.2012.

Article 49. (repealed)🔗

Law of Georgia of 18 June 2010 No. 3114 - LHG I, No. 2922.06.2010, Art. 189

Law of Georgia of 29 June 2010 No. 3265 - LHG I, No. 3206.07.2010, Art. 198

Law of Georgia of 25 November 2011 No. 5351 - website, 25.11.2011

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014

Article 49¹. (repealed)🔗

Law of Georgia of 18 June 2010 No. 3114 - LHG I, No. 2922.06.2010, Art. 189

Law of Georgia of 29 June 2010 No. 3265 - LHG I, No. 3206.07.2010, Art. 198

Law of Georgia of 28 October 2011 No. 5172 - website, 07.11.2011

Law of Georgia of 25 November 2011 No. 5351 - website, 25.11.2011

Article 50. (repealed)🔗

Law of Georgia of 12 November 2010 No. 3806 - LHG I, No. 66, 03.12.2010, Art. 414

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014

Article 51. (repealed)🔗

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014

Article 52. (repealed)🔗

Law of Georgia of 18 June 2010 No. 3114 - LHG I, No. 2922.06.2010, Art. 189

Law of Georgia of 13 July 2010 No. 3439 - LHG I, No. 3613.07.2010, Art. 218

Law of Georgia of 22 February 2011 No. 4210 – website, 10.03.2011

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014

Article 53. Accounting and Reporting of the State Budget🔗

1. The State Treasury shall carry out the accounting of payments for financing the expenditures of the State Budget in accordance with the budget classification, which includes information on all stages of payment execution. The State Treasury shall also record the revenues provided for by the budget classification and the refunded overpaid amounts.

2. The State Treasury shall, within 20 days after the end of each month, prepare a report showing the revenues, expenditures, change in balance and overall balance of the State Budget and submit it to the Parliament of Georgia.

Law of Georgia No. 2935 of 12 December 2014 – website, 24 December 2014.

Article 54. Quarterly Review of the Execution of the State Budget🔗

Within 1 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 on a cumulative basis, which includes:

a) current developments in macroeconomics and the budget sphere;

b) comparison of the actual volumes of revenues, expenditures (including expenditures of general state importance), change in balance and overall balance with the planned indicators for the corresponding period.

Article 55. Preparation and submission of the annual report and reporting on the execution of the state budget🔗

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

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

Law of Georgia of 20 November 2013 No. 1599 - website, 03.12.2013.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Law of Georgia of 15 December 2022 No. 2384 – 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 contain at least the following information on the execution of the annual budget:

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

b) a macroeconomic review;

c) comparison of the budget revenues and expenditures according to the budget classification with the planned indicators of the respective period;

d) the balances in the accounts of the single account system of the State Treasury as at the beginning and the end of the year;

e) an explanation of the discrepancy between the approved and the adjusted appropriations by programmes of the spending institutions, if such discrepancy exceeds 30%;

f) an explanation of the discrepancy between the adjusted appropriations and the amounts paid by programmes of the spending institutions, if such discrepancy exceeds 15%;

g) information on the status of execution of the expenditures of common state importance (including on the state debts outstanding as at the end of the budget year);

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

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

i¹) the cash execution indicators of the budgets of the state enterprises attributed to the government sector provided for by subparagraph „b3.a“ of Article 6 of this Code;

j) the tax revenues received by the municipality;

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

2. The information provided for by the first paragraph of this Article shall reflect the data on the funds received by the ministries and agencies during the year in the form of monetary grants/targeted financing, the accounting/expenditure of which during the budget year is carried out in accordance with the rules approved by the Minister of Finance of Georgia.

Law of Georgia of 18 June 2010 No. 3114 - LHG I, No. 2922.06.2010, Art. 189

Law of Georgia of 28 October 2011 No. 5172 - website, 07.11.2011

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014

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

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

Article 57. Audit by the State Audit Office of the annual report on the execution of the state budget🔗

Within 50 days from the transfer to it by the Government of Georgia of the annual report on the execution of the state budget, the State Audit Office shall notify the Government of Georgia of the completion of the report on the said report and shall submit to the Parliament of Georgia a report on the annual report on the execution of the state budget.

Law of Georgia of 22 June 2012 No. 6550 – website, 29.06.2012.

Law of Georgia of 20 November 2013 No. 1599 – website, 03.12.2013.

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

Article 58. Approval of the annual report on the execution of the state budget🔗

After consideration of the annual report on the execution of the state budget and hearing the report of the State Audit Office on the said 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 of 22 June 2012 No. 6550 – website, 29.06.2012.

Law of Georgia of 20 November 2013 No. 1599 – website, 03.12.2013.

Article 59. Basis for granting a loan🔗

1. The granting of a loan from the State Budget and its control shall be carried out in accordance with the conditions and rules established by this Chapter. Relations related to the granting of a loan, control over the targeted use of the loan and the performance of loan repayment 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 to be granted within the framework of projects financed by foreign donors;

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

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

d) a loan granted within the framework of temporary state financing in accordance with the Organic Law of Georgia "On the National Bank of Georgia", the procedure for the granting of which 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 an order of the Government of Georgia, which shall determine:

a) the purpose of the loan;

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

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

d) the lender, the issuer of the loan, the borrower, the person exercising control and other parties to the loan contract;

e) the amount of the loan;

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

g) the terms for the use of the loan and repayment of the loan.

4. The order may also determine other conditions necessary for the granting and repayment of the loan and for its targeted and effective use.

Law of Georgia of 29 June 2010 No 3265 - LHG I, No 3206.07.2010, Art. 198

Law of Georgia of 20 November 2013 No 1599 - website, 03.12.2013

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

Law of Georgia of 15 July 2020 No 6946 – website, 28.07.2020

Article 60. Lender and borrower🔗

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

2. The borrower 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 a natural person.

Article 61. Means of securing a loan claim🔗

1. For the purpose of securing loan obligations, the loan recipient shall provide one of the means of securing the loan claim provided for by paragraph 2 of this Article.

2. The means of securing a loan claim are:

a) a bank guarantee, by which, in the event of non-fulfilment of the obligations assumed by the loan recipient, the guaranteeing bank assumes a written obligation, upon the written demand of the lender, to transfer a monetary amount into the State Budget in order to cover the overdue loan indebtedness of the loan recipient;

b) an insurance certificate (policy) of an insurance organisation, by which the insurance organisation issuing the policy assumes a written obligation, upon the occurrence of an insured event, upon the written demand of the lender, to transfer a monetary amount into the State Budget in order to cover the overdue loan indebtedness of the loan recipient;

c) pledge or/and mortgage of own or a third person's property in favour of the lender.

3. The means of securing the loan claim in each specific case, taking into account the existing circumstances, shall be chosen by the lender.

4. In the event of overdue loan indebtedness, the lender is entitled to use the means of securing the loan claim in order to cover the overdue loan indebtedness, in accordance with the procedure and conditions established by the legislation of Georgia.

5. The loan contract shall provide for an additional means of securing the loan claim, according to which the loan recipient bears a penalty for the non-fulfilment or/and improper fulfilment of loan obligations.

Article 62. Control of the targeted use of the loan🔗

1. Control of the targeted use of the loan shall be exercised by the lender, unless another administrative body exercising control is determined by an instruction.

2. In the event of non-targeted use of the loan, the loan recipient is obliged to stop the non-targeted spending of the loan, within a reasonable time to correct the violated conditions, and to direct the corresponding amount of the loan used for non-targeted purposes from its own funds for the purposes provided for by the loan contract.

3. If the loan recipient has not ensured the fulfilment of the obligations provided for by paragraph 2 of this Article, the loan recipient is obliged, within 30 calendar days from the receipt of a written warning, to return the loan (tranche) used for non-targeted purposes and to pay the interest accrued thereon, a fine, and default interest, the accrual of which shall continue until the fulfilment of the respective obligations.

Article 63. Non-performance of an obligation by the borrower, means and conditions for repayment of overdue loan debt🔗

1. Immediately upon the occurrence of overdue loan debt, the lender shall have the right to exercise against the borrower the powers conferred by the loan contract, this Code and the legislation of Georgia in order to ensure repayment of the overdue loan debt.

2. As a means of repayment of overdue loan debt, a means of securing the loan claim, compulsory enforcement against the borrower in accordance with the Law of Georgia on Enforcement Proceedings and/or other measures provided for by the legislation of Georgia may be used.

3. In order to ensure repayment of overdue loan debt, the lender shall be obliged, no later than 6 months from the occurrence of the overdue loan debt, to apply in writing to the Ministry of Finance of Georgia. The lender's written notification shall be based on the existence of overdue loan debt, shall determine the amount of the overdue loan debt, the grounds for its occurrence, and shall contain the relevant justification.

4. The basis for the use of a means of repayment of overdue loan debt shall be an individual administrative-legal act of the Minister of Finance of Georgia, which shall be issued on the basis of the lender's written notification, in compliance with the requirements of the General Administrative Code of Georgia, on the basis of formal administrative proceedings.

5. No later than 6 months from the registration with the Ministry of Finance of Georgia of the lender's written notification on the use of a means of repayment of overdue loan debt, the Minister of Finance of Georgia shall consider it and, proceeding from state interests, shall take a decision on the use or non-use of the means of repayment of overdue loan debt. Loans issued to legal entities of public law, enterprises (more than 50% of whose shares or interest is owned by a state body or municipality/municipalities) and legal/natural persons participating in state programs shall be considered state interests. After the expiry of this period, the lender's request on the use of a means of repayment of overdue loan debt shall be considered unsatisfied.

6. On the basis of the individual administrative-legal act of the Minister of Finance of Georgia on the use of a means of repayment of overdue loan debt, a 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. The individual administrative-legal act of the Minister of Finance of Georgia on the use of a means of repayment of overdue loan debt may be appealed in court in accordance with the procedure established by the legislation of Georgia. An appeal against the act shall not result in the suspension of its enforcement, as well as of actions carried out in the enforcement process.

Law of Georgia of 29 June 2010 No. 3265 - LHG I, No. 3206.07.2010, Art. 198

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020

Article 64. Registry of loans issued from the State Budget🔗

1. Data on loans issued from the State Budget shall be reflected in the registry maintained by the lender. The lender shall submit to the Ministry of Finance of Georgia:

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

b) copies of the loan contract, of the schedule for repayment of the loan and the interest accrued thereon, as well as of the amendments made thereto.

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

2. The procedure for maintaining the registry of loans issued from the State Budget and the form of the registry shall be approved by the Minister of Finance of Georgia.

Law of Georgia of 29 June 2010 No. 3265 - LHG I, No. 3206.07.2010, Art. 198

Article 65. Independence of the municipal budget🔗

1. Each municipality has its own independent budget.

2. The municipal budget is independent both from the budget of another municipality and from the State Budget and the republican budgets of the autonomous republics.

3. The independence of municipal bodies in budgetary activity is guaranteed by their own revenues provided for by this Code and by independently determining the payments to be made for the exercise of their own powers, as well as by the right to take independent decisions within the scope of delegated powers as established by law.

4. The authorities of Georgia and of the autonomous republics shall not be entitled to interfere in the budgetary powers of municipal bodies.

Law of Georgia of 5 February 2014 No. 1959 - website, 19.02.2014

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020

Article 66. Own and non-own revenues of the municipal budget🔗

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

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

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020

Article 67. Reserve Fund of the Municipality's Budget🔗

1. To finance unforeseen expenditures in the municipality's budget, a reserve fund shall be created, the amount of which shall not exceed 2% of the total volume of allocations provided for by the annual budget.

2. Funds from the reserve fund shall be allocated by the financial body on the basis of a decision of the mayor, which includes information on the amount and purpose of the funds.

Law of Georgia of 26 July 2017 No. 1267 – website, 29.07.2017.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 68. Fund for Repayment of Debts Arising in Previous Years and Enforcement of Court Judgments🔗

1. In the municipality's budget, a fund for repayment of debts arising in previous years and enforcement of court judgments shall be created, the disposal 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 the municipality.

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

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 69. Reallocation of municipal budget assignments and changes in the programme classification🔗

1. Reallocation of assignments from one priority to another priority, except for assignments allocated in accordance with Articles 67 and 68 of this Code, may be carried out only by introducing changes into the approved annual budget.

2. Within one priority, reallocation of funds between programmes, subprogrammes and budget classification articles may be carried out.

3. Within one priority, reallocation of funds between programmes shall not exceed 5% of the payments approved by the annual budget for this priority, except for assignments allocated in accordance with Articles 67 and 68 of this Code.

4. On the basis of the relevant legal act and proposals submitted by a budget organization, the executive body of the municipality is entitled to make changes (addition of a programme/subprogramme, change of the name of a programme/subprogramme) in the programme classification.

5. The executive body of the municipality is entitled, on the basis of the relevant legal act, for the purpose of reflecting funds allocated from payments of common state importance provided for by the state budget, to make changes (including addition of a programme code or programme) in the revenues and payments approved by the budget. These changes shall be submitted to the representative body of the municipality within 1 month, but not later than the end of the budget year.

6. Refinement of the annual budget with assignments allocated in accordance with Articles 67 and 68 of this Code and the changes provided for by paragraphs 2–5 of this Article shall be carried out in accordance with the rules established by the representative body of the municipality – the Sakrebulo.

7. Refinement of the budgets of legal entities of public law/non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs „b1.c“ and „b2.c“ of Article 6 of this Code shall be carried out in accordance with the rules established by the representative body of the municipality – the Sakrebulo.

Law of Georgia of 28 October 2011 No. 5172 - website, 07.11.2011.

Law of Georgia of 20 December 2012 No. 117 - website, 29.12.2012.

Law of Georgia of 5 February 2014 No. 1959 - website, 19.02.2014.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 70. Emergency budget🔗

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

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 71. Rule for the distribution of value added tax attributable to municipalities🔗

1. The distribution of value added tax for municipalities shall be carried out within the indicator envisaged for municipalities by column 4 of the table in the annex to this Code ("Distribution of revenues among the republican and municipal budgets of Georgia, the Autonomous Republic of Abkhazia and the Autonomous Republic of Adjara according to percentage indicators").

2. In accordance with this article, the distribution of value added tax shall be carried out for all municipalities, except for the municipalities provided for by Article 164 of the Organic Law of Georgia "Local Self-Government Code".

3. The distribution of value added tax for municipalities shall be carried out according to the number of the population registered in the municipality, the number of children under 6 years of age, the number of adolescents from 6 to 18 years of age, the area of the municipality and the number of persons having the status of a person permanently residing in a high mountain settlement, namely, of the value added tax designated for municipalities:

a) 60% shall be distributed according to the number of the population registered in the municipality;

b) 15% shall be distributed according to the number of children under 6 years of age registered in the municipality;

c) 10% shall be distributed according to the number of adolescents from 6 to 18 years of age registered in the municipality;

d) 5% shall be distributed according to the area of the municipality;

e) 10% shall be distributed according to the number of persons having the status of a person permanently residing in a high mountain settlement.

4. When preparing the draft law on the State Budget, the Ministry of Finance of Georgia shall, in accordance with paragraphs 1 and 2 of this article, calculate and reflect in the draft budget law the percentage indicator of the share attributable to each municipality in the value added tax determined for municipalities.

5. A special transfer shall be allocated to the budgets of the municipalities provided for by Article 164 of the Organic Law of Georgia "Local Self-Government Code", the amount of which shall be determined by the budget law of the respective year.

Law of Georgia No. 1959 of 5 February 2014 – website, 19.02.2014

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

Law of Georgia No. 6946 of 15 July 2020 – website, 28.07.2020

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

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

1. The process of preparation and submission of the draft municipal budget shall be coordinated by the financial body of the municipality.

2. For the purposes of preparation, submission and approval of the draft municipal budget, the Ministry of Finance of Georgia shall provide the municipalities with relevant methodological instructions.

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 76. Municipal priorities document🔗

1. The municipal priorities document is the main plan for the development of administrative units, which reflects information on medium-term action plans.

2. The municipal priorities document shall be drawn up by the executive body of the municipality in consultation with the administration of the relevant State Representative.

3. For the purpose of preparing the municipal priorities document, the executive body of the municipality shall start work from 1 March of each year, for which purpose it shall issue a relevant administrative-legal act defining the list of information to be submitted for drawing up the priorities and the deadlines for submission.

4. The municipal priorities document shall contain at least the following information:

a) aggregated indicators of the revenues and expenditures of the municipal budget, of operations with financial and non-financial assets and of obligations for the past, current and planned budget years and for the three budget years following the planned year;

b) an analysis of the final results of the execution of the municipal budget for the past budget year and the revised forecasts for the current budget year;

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

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

c.b) the medium-term priorities of the municipality and the amounts of funding, goals and results of the main programmes and measures to be implemented in order to achieve them.

5. The executive body of the municipality (except for a municipality forming part of an autonomous republic) shall submit the municipal priorities document to the representative body of the municipality and to the Ministry of Finance of Georgia no later than 15 November.

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

Law of Georgia of 20 December 2012 No. 117 - website, 29.12.2012.

Law of Georgia of 20 September 2018 No. 3461 – website, 09.10.2018.

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 77. Preparation of the draft municipal budget, submission of the draft municipal budget and the priorities document to the representative body of the municipality🔗

1. The Ministry of Finance of Georgia shall, by 15 July of the current year, notify the municipal bodies of the main budget parameters of the planned budget year.

2. Taking into account the information received from the Ministry of Finance of Georgia, the financial authority shall calculate the forecast indicators of receipts and payments and shall begin the relevant procedures for drawing up the draft municipal budget.

3. In order to prepare the draft municipal budget, the relevant financial authority shall send budget application forms to budget organizations, indicating the indicative ceiling amounts for allocations and the number of employees.

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

a ) for the past, current and planned budget years:

a.a) calculation of allocations provided for programs/subprograms according to the lowest rank of the budget classification (except the program classification);

a.b ) calculation of allocations according to the program classification;

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

a.d ) information on donor-funded projects and allocations provided for co-financing and co-participation in these projects (if any);

a.e) information on receipts receivable by a Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity provided for by subparagraphs “b 1.c” and “b 2.c” of Article 6 of this Code from any source permitted by Georgian legislation, payments to be made from these sources, and changes in the balance;

b) for the planned budget year and the three budget years following the planned year, programs/subprograms to be implemented from the allocations provided by the budget, their financing, description, objectives, expected results and indicators for assessing their implementation;

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

5. Submission by a budget organization of a budget application in excess of the ceiling amounts provided for by paragraph 3 of this Article (if any) is permissible only in the form provided for by the budget application.

6. The Ministry of Finance of Georgia shall, no later than 5 October, notify the municipal bodies of the forecast indicators of the financial assistance to be transferred to the respective budget under the draft state budget and of the revenues receivable from taxes.

6¹. It is inadmissible 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 plan of tax revenues planned 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 respective municipality shall submit the draft municipal budget, together with the attached materials, to the representative body of the municipality — the Sakrebulo — for consideration no later than 15 November.

8. Together with the draft budget, the document of priorities of the respective municipality shall be submitted to the representative body of the municipality — the Sakrebulo.

8¹. The draft budget shall be prepared by the financial body of the municipality through the electronic system of public finance management.

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

a) the budget balance according to the budget classification;

b) budget revenues, the change in balance and the amount of appropriations provided for each programme/subprogramme according to the following items 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 amount of appropriations provided by the budget according to the functional classification of expenditures and operations on non-financial assets;

d) the amount of the budget surplus or deficit;

e) the amount of budget appropriations according to the programme classification;

f) the amount of the reserve fund;

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

h) the priorities within the framework of which budget organizations implement programmes/subprogrammes with budget funding, their description and objectives.

10. The materials attached to the draft budget include:

a) an explanatory note to the draft budget;

b) a brief overview of the execution of the current year's budget;

c) information on the revenues receivable by a legal entity of public law/non-entrepreneurial (non-commercial) legal entity provided for by subparagraphs „b1.c“ and „b2.c“ of Article 6 of this Code from any source permitted by the legislation of Georgia, the payments to be made from these sources and the change in balance;

c¹) information on the revenues receivable by state enterprises attributed to the government sector, as provided for by subparagraph „b3.c“ of Article 6 of this Code, from any source permitted by the legislation of Georgia, the payments to be made and the change in balance;

d) additional information on the programmes/subprogrammes defined by the budget, their expected results and performance evaluation indicators;

e) information on those investment/capital projects selected and evaluated in accordance with the criteria defined by the methodology provided for by paragraph 4 of Article 9 of this Code, for the commencement of which appropriations are provided in the budget of the planned year and/or in the fiscal indicators of the three years following the planned year. The said information shall include the description, cost, implementation timelines and expected results of the investment/capital project.

11. The information provided for in paragraph 9 of this Article, except for the information provided for in subparagraph „t“ of the same paragraph, shall be submitted for the past, current and planned budget years.

12. The information provided for in subparagraph „h“ of paragraph 9 of this Article shall be submitted for the planned budget year and for the three budget years following the planned year.

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

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

Law of Georgia of 5 February 2014 No. 1959 – website, 19.02.2014.

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

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

Law of Georgia of 26 July 2017 No. 1267 – website, 29.07.2017.

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

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

Article 78. Consideration and approval of the draft budget of a municipality🔗

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

2. The representative body of the municipality shall publicly consider the draft budget and, before the beginning of the new budget year, adopt a decision on approval of the draft budget of the municipality. The decision on approval of the draft budget shall be adopted by a majority of the membership of the representative body.

3. If there are remarks, the representative body of the municipality − the Sakrebulo shall, not later than 25 November, return the draft budget with remarks to the Mayor of the municipality.

4. Not later than 10 December, the Mayor of the municipality shall submit the same or revised versions of the draft budget and of the priorities document to the representative body of the municipality − the Sakrebulo.

5. When the draft budget is considered by the representative body of the municipality − the Sakrebulo, amendments may be made to it only in agreement with the Mayor of the municipality.

6. If the representative body of the municipality − the Sakrebulo has not approved the revised version of the draft budget submitted by the Mayor of the municipality, or in the event of the Mayor's failure to share the Sakrebulo's remarks − the original version of the budget, the Sakrebulo is entitled, by 3/5 of its membership, to approve a draft budget initiated by a faction of the Sakrebulo or by not less than 1/3 of the membership of the Sakrebulo, which shall take into account only the remarks sent by the Sakrebulo to the Mayor in accordance with paragraph 3 of this article, or part thereof.

7. If the draft budget of the municipality is not approved within 3 months from the beginning of the new budget year, the Government of Georgia shall be entitled to terminate early the powers of the representative body of the municipality − the Sakrebulo in accordance with the procedure established by the Organic Law of Georgia "Local Self-Government Code".

7¹. The decision on approval of the draft budget of the municipality adopted by the representative body of the municipality – the Sakrebulo shall contain the information provided for by paragraph 9 of Article 77 of this Code.

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

8¹. The budget of a legal entity of public law/non-entrepreneurial (non-commercial) legal entity provided for by subparagraphs "b 1.c" and "b 2.c" of Article 6 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.

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

Law of Georgia of 20 November 2013 No. 1599 – website, 03.12.2013.

Law of Georgia of 5 February 2014 No. 1959 – website, 19.02.2014.

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

Law of Georgia of 26 July 2017 No. 1267 – website, 29.07.2017.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Law of Georgia of 16 December 2022 No. 2437 – website, 29.12.2022.

Article 79. Provision for a targeted transfer in the municipal budget🔗

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

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

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

4. The rules for the provision and use, in the republican budget of the Autonomous Republic, of a targeted transfer from the republican budget of the Autonomous Republic to the budget of a municipality within the Autonomous Republic shall be determined by the representative body of the Autonomous Republic.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 79¹. Rule for the allocation of a special transfer🔗

1. A special transfer shall be allocated for the liquidation of the consequences (damage) of natural phenomena, ecological and other types of catastrophes, military operations, epidemics and other emergency situations, as well as for the implementation of other measures. A special transfer is financial assistance provided between the state budget, the republican budget of the Autonomous Republic and municipal budgets. A municipality may allocate a transfer only if it serves the purposes of the municipality granting the transfer within the scope of its own powers determined by the legislation of Georgia.

2. In the case provided for by paragraph 1 of this Article, a municipality shall be entitled to apply to the Government of Georgia/ministries of Georgia and/or the Government of the Autonomous Republic of Georgia/ministries of the Autonomous Republic of Georgia requesting the allocation of a special transfer in the form of financial assistance. Such application shall state the grounds for the request for the allocation of the special transfer and the amount of the transfer.

3. A special transfer for the budget of the 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 municipality's proposal on the allocation of a special transfer may be submitted to another municipality.

Law of Georgia No. 1959 of 5 February 2014 – website, 19.02.2014

Law of Georgia No. 2588 of 30 July 2014 – website, 11.08.2014

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

Law of Georgia No. 6946 of 15 July 2020 – website, 28.07.2020

Article 79². Rule for the allocation of a capital transfer🔗

1. A capital transfer shall be allocated for the implementation of a capital project. A capital transfer is financial assistance provided between the state, autonomous republic republican and municipal budgets, which is linked to an increase in the recipient's non-financial assets. A municipality may allocate a capital transfer only if it serves the goals of the transferring municipality within the scope of its own powers determined by the legislation of Georgia.

2. In the case provided for by paragraph 1 of this article, a municipality is entitled to apply to the Government of Georgia/ministries of Georgia and/or the Government of the Autonomous Republic of Georgia/ministries of the Autonomous Republic of Georgia requesting the allocation of a capital transfer in the form of financial assistance. This application shall state the grounds for the request for the allocation of the capital transfer and the volume of the transfer.

3. From the state budget to the republican budget of the autonomous republic, a capital transfer shall be allocated by the procedure determined by paragraph 2 of this article.

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

Law of Georgia of 5 February 2014 No. 1959 - website, 19.02.2014.

Law of Georgia of 30 July 2014 No. 2588 - website, 11.08.2014.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 80. Introduction of amendments and/or additions to the municipal budget🔗

1. The introduction of amendments and/or additions to the assignments provided for by the annual budget, except for the procedure established by Article 69 of this Code, requires the introduction of amendments and/or additions to the municipal budget.

2. The representative body may introduce amendments and/or additions to the municipal budget only upon the submission of the mayor.

Law of Georgia of 26 July 2017 No. 1267 - website, 29.07.2017.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 81. General provision on the execution of the municipal budget🔗

The execution of the municipal budget shall be ensured, within the scope of its competence, by the executive body of the municipality.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 82. Allocation Schedule of the Municipal Budget🔗

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

2. When preparing the quarterly and/or monthly allocation schedule of the municipal budget, the free balance may be used for the purpose of financing the appropriations, provided that the annual amount of the change of the balance envisaged by the annual budget remains unchanged.

3. Within the time limit determined by paragraph 1 of this article, the financial body shall also prepare the quarterly and/or monthly allocation schedule of the budgets of the legal entities of public law and non-entrepreneurial (non-commercial) legal entities envisaged by subparagraphs „b1.c“ and „b2.c“ of Article 6 of this Code, which shall correspond to the information envisaged by subparagraph „c“ of paragraph 10 of Article 77 of this Code submitted to the relevant municipal council.

Law of Georgia No. 2935 of 12 December 2014 - website, 24.12.2014.

Law of Georgia No. 6946 of 15 July 2020 – website, 28.07.2020.

Article 83. Responsibility for the execution of the municipal budget🔗

1. Budgetary organizations shall be responsible for making payments in accordance with the appropriations and, within the scope of their competence, for collecting revenues.

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

3. (Removed - 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, 28.07.2020.

Article 84. Accounting and reporting of the municipal budget🔗

1. The municipal budget account is opened in the system of the single account of the State Treasury. The right to control the management and operation of this account, as well as to grant permission for the transfer of funds from this account, except in exceptional cases provided by the legislation of Georgia, shall be held only by the respective municipality.

2. (Removed - 12.12.2014, No. 2935).

3. The financial body of the municipality shall record the payments made by each budgetary organization, which includes information on all stages of the payment execution according to the budget classification. It shall also record the revenues provided by the budget classification.

4. The financial body of the municipality shall, within 10 days after the end of each month, prepare a report showing the municipal budget revenues, payments, change in balance and the total balance.

Law of Georgia of 20 December 2012 No. 117 - website, 29.12.2012.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 85. Quarterly review of the execution of the municipal budget🔗

Within 1 month after the end of each quarter, the executive body of the municipality shall submit to the respective representative body a quarterly review of the budget execution on a cumulative basis, which includes a comparison of the actual volumes of revenues, payments (including funds allocated from the reserve fund), change in balance and the total balance with the planned indicators for the respective period.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 86. Preparation and submission of the annual report and reporting on the execution of the municipal budget🔗

The financial body of the municipality shall prepare the annual report on the execution of the budget and shall submit it to the representative body no later than 2 months after the end of the budget year.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 87. Annual Report on the Execution of the Municipal Budget🔗

The annual report on the execution of the municipal budget shall contain at least the following information on the execution of the annual budget:

a) the budget balance according to the budget classification;

b) comparison of the budget receipts and payments according to the budget classification with the planned indicators for the respective period;

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

d) an explanation of the discrepancy between the allocations specified by programmes and the amounts paid, if such discrepancy exceeds 30%;

e) information on the status of the allocation of funds from the reserve and the funds for covering arrears incurred in previous years and for the enforcement of court judgments (if any);

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

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

h) the cash execution indicators of the budgets of state enterprises attributed to the government sector provided for by subparagraph „b3.c“ of Article 6 of this Code.

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

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

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

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

Article 88. Approval of the Annual Report on the Execution of the Municipal Budget🔗

1. The representative body of a municipality − the Sakrebulo shall publicly consider the annual report on the execution of the budget and, not later than 1 May, shall adopt a decision on the approval or non-approval of the annual report.

2. The audit report on the municipal budget and the annual report on its execution are public information and shall be accessible to the public in accordance with the procedure established by the legislation of Georgia.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 89. Independence of the Republican Budget of the Autonomous Republic🔗

1. The Autonomous Republic has its own independent republican budget.

2. The independence of the republican budget of the Autonomous Republic shall be ensured by its own sources of receipts and the right to independently determine its own payments in accordance with the legislation of Georgia.

Article 89¹. Payments of Common-Republican Significance🔗

1. Payments of common-republican significance are the allocation provided for in the annual budget under the first-rank code, which comprises separate codes:

a) servicing and repayment of obligations;

b) the reserve fund of the republican budget of the Autonomous Republic;

c) the fund for the repayment of debts incurred in previous years and the enforcement of court judgments;

d) transfers to be transferred to municipalities;

e) the fund for projects to be implemented in the municipalities existing in the territory of the Autonomous Republic.

2. Other categories of payments of common-republican significance may be determined by the annual budget.

3. In addition to the funds provided for by this Chapter, the administrator of other payments of common-republican significance shall be determined by the annual budget.

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

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

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 90. Reserve Fund of the Republican Budget of the Autonomous Republic🔗

1. In order to finance unplanned payments in the republican budget of the Autonomous Republic, a reserve fund shall be established, the amount of which shall not exceed 2% of the total amount of allocations provided for by the annual budget.

2. Funds from the reserve fund shall be allocated by the respective financial body on the basis of a decision of the Chairperson of the Government of the Autonomous Republic, which includes information on the amount and purpose of the funds.

Article 91. Fund for the Repayment of Debts Incurred in Previous Years and the Enforcement of Court Judgments🔗

1. In the republican budget of the Autonomous Republic, a fund for the repayment of debts incurred in previous years and the enforcement of court judgments shall be established, the administration 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 the Autonomous Republic.

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

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

Article 91¹. Fund for Projects to be Implemented in Municipalities Located in the Territory of the Autonomous Republic🔗

1. A fund for projects to be implemented in municipalities located in the territory of the Autonomous Republic may be established in the republican budget of the Autonomous Republic, the disposal of which shall be carried out in accordance with a decision adopted by the executive body of the Autonomous Republic.

2. Funds from the fund for projects to be implemented in municipalities located in the territory of the Autonomous Republic shall be allocated by the finance body on the basis of an adopted decision.

3. The amount of the fund for projects to be implemented in municipalities located in the territory of the Autonomous Republic shall be determined by the annual budget.

4. If the amount to be allocated from the fund for projects to be implemented in municipalities located in the territory of the Autonomous Republic does not exceed GEL 100,000, the Chairman of the Government of the Autonomous Republic shall be entitled, upon the submission of the finance body, to adopt a decision on the allocation of the amount.

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

Article 92. Reallocation of and amendments to the assignments of the republican budget of the Autonomous Republic in the programme classification🔗

1. Reallocation of assignments from one spending institution to another spending institution, except for the assignments allocated in accordance with Articles 90 and 91 of this Code, may be carried out only by introducing amendments to the annual budget.

2. Reallocation of funds between programmes, subprogrammes and items of the budget classification of a spending institution may be carried out.

3. Reallocation of funds between programmes of a spending institution shall not exceed 5% of the payments approved by the annual budget for the spending institution, except for the assignments allocated in accordance with Articles 90 and 91 of this Code.

4. On the basis of the relevant legal act and the proposals submitted by the spending institution, the executive body of the Autonomous Republic is entitled to make amendments (addition of a programme/subprogramme, change of the name of a programme/subprogramme) in the programme classification.

5. The executive body of the Autonomous Republic is entitled, on the basis of the relevant legal act, for the purpose of reflecting the funds allocated from the payments of common-state importance provided for by the State budget, to make amendments (including addition of a programme/subprogramme) in the revenues and payments approved by the budget. These amendments shall be submitted to the representative body of the Autonomous Republic within 1 month, but not later than the end of the budget year.

6. The specification of the annual budget by the assignments allocated from the payments of common-republican importance and the amendments provided for by paragraphs 2–5 of this Article shall be carried out in accordance with the procedure established by the executive body of the Autonomous Republic.

61. The executive body of the Autonomous Republic determines the procedure for the specification of the budgets of the legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs "b1.b" and "b2.b" of Article 6 of this Code, in the part of other revenues (non-budgetary funds) permitted by the legislation of Georgia.

7. On the basis of the proposals submitted by the spending institutions and the decision taken by the executive body of the Autonomous Republic, funds from the assignments allocated to the spending institutions may be reallocated to payments of common-republican importance, if the reallocated funds do not exceed 2% of the assignments approved by the annual budget for payments of common-republican importance. The financial body of the Autonomous Republic shall notify the Supreme Council of the Autonomous Republic of the said reallocation.

Law of Georgia of 28 October 2011 No. 5172 - website, 07.11.2011.

Law of Georgia of 20 December 2012 No. 117 - website, 29.12.2012.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Article 93. Emergency budget🔗

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

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

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

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

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

3. Upon the request of the Ministry of Finance of Georgia, the authorities of the autonomous republic shall be obliged to submit to it, in a timely and complete manner, information on the republican budget of the autonomous republic.

Article 95. Document of Priorities of the Autonomous Republic🔗

1. The document of priorities of the Autonomous Republic is the main plan for the development of the Autonomous Republic, which reflects information on medium-term action plans.

2. The drafting of the document of priorities of the Autonomous Republic shall be coordinated by the finance body of the Autonomous Republic.

3. For the purpose of preparing the document of priorities of the Autonomous Republic, the executive body of the Autonomous Republic shall, before 1 March of each year, issue a relevant administrative-legal act.

4. For the purpose of agreeing the main data and directions with the Supreme Council of the Autonomous Republic, the Chairperson of the Government of the Autonomous Republic shall, before 15 June of each year, submit to it information on the main directions of the ministries of the Autonomous Republic. The Supreme Council of the Autonomous Republic shall send its conclusion on the said information to the Government of the Autonomous Republic no later than 30 June.

5. The document of priorities of the Autonomous Republic shall contain at least the following information:

a) aggregated indicators of the revenues and expenditures of the republican budget of the Autonomous Republic, of operations with financial and non-financial assets and of obligations for the past, current and planned budget years and for the three budget years following the planned year;

b) an analysis of the final results of the execution of the republican budget of the Autonomous Republic for the past budget year and the revised forecasts for the current budget year;

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

c.a) the priorities of the Autonomous Republic determined by the executive body of the Autonomous Republic;

c.b) the programmes of the spending institutions of the republican budget of the Autonomous Republic and the amounts, objectives and results of their financing;

c.c) aggregated indicators on the indicative ceiling volume of allocations envisaged for each spending institution of the republican budget of the Autonomous Republic;

d) the indicative ceiling number of employees for the planned budget year, by spending institutions;

e) the programmes of the municipality included in the Autonomous Republic and the amounts, objectives and results of their financing.

6. The executive body of the Autonomous Republic shall, no later than 25 July, approve the document of priorities of the Autonomous Republic (except for the information provided for by subparagraph „e“ of paragraph 5 of this Article).

Law of Georgia No. 3114 of 18 June 2010 - LHG I, No. 2922.06.2010, Art. 189

Law of Georgia No. 5172 of 28 October 2011 - website, 07.11.2011

Law of Georgia No. 6946 of 15 July 2020 – website, 28.07.2020

Article 96. Deadlines for the preparation and submission of an application for financial assistance🔗

1. For the planned budget year, when there is a need to receive financial assistance from the State Budget, the executive body of the Autonomous Republic shall, no later than 15 June, submit to the Ministry of Finance of Georgia basic data for determining the amount of financial assistance.

2. The Ministry of Finance of Georgia shall notify the executive body of the Autonomous Republic of the main budget parameters of the planned budget year by 15 July of the current year, and information on the allocation of financial assistance from the State Budget to the republican budget of the Autonomous Republic – no later than 5 October.

Article 97. Budget application and maximum amounts🔗

1. No later than 5 days after approval by the Government of the Autonomous Republic of the document on the priorities of the Autonomous Republic, the relevant financial body shall ensure the provision to spending institutions, through the electronic budget management system, of budget application forms, using which the spending institutions shall electronically submit to the financial body information on the budgets of the planned years.

2. The information on the budgets of the planned years submitted by the spending institutions to the financial body shall comply with the maximum amounts of staff and allocations determined for the spending institutions by the document on the priorities of the Autonomous Republic.

3. The budget application shall be submitted to the financial body in the manner provided for by paragraph 1 of this Article by the legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs “b1.c” and “b2.c” of Article 6 of this Code, which are not spending institutions of the republican budget of the Autonomous Republic or budgetary organizations subordinate to their control.

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

Article 98. Submission of budget applications by spending institutions🔗

1. Heads of spending institutions shall submit budget applications to the financial body not later than 25 August. A budget application shall contain at least the following information:

a) for the past, current and planned budget years:

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

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

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

a.d) information on donor-funded projects and on the assignments provided for the co-financing of and participation in these projects;

a.e) information on the change of receipts receivable from any source permitted by the legislation of Georgia by the legal entity of public law/non-entrepreneurial (non-commercial) legal entity provided for by subparagraphs "b 1.b" and "b 2.b" of Article 6 of this Code, of the payments to be made from these sources and of the balance;

b) the programmes and subprogrammes to be implemented from the assignments provided for the spending institution for the planned budget year and for the three budget years following the planned year, their financing, description, objectives, expected results and indicators for evaluating their implementation;

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

1¹. The information provided for by subparagraph "a.e" of paragraph 1 of this Article shall be submitted, within the time limit provided for by this Code for the submission of a budget application, by the budget organisations provided for by paragraph 3 of Article 97 of this Code.

2. Submission by a spending institution of a budget application above the ceilings provided for by subparagraphs "c.c" and "d" of paragraph 5 of Article 95 of this Code (if any) shall be permissible only in the form provided for by the budget application.

3. If the information reflected in the budget application differs from the information provided for by subparagraphs "c.b", "c.c" and "d" of paragraph 5 of Article 95 of this Code, the spending institution shall, together with the budget application, submit to the financial body information on the reasons for this difference.

4. The reflection in the draft republican budget of the assignments provided for payments of common-republican significance shall be ensured by the financial body of the autonomous republic.

Law of Georgia of 18 June 2010 No. 3114 - LHG I, No. 2922.06.2010, Art. 189

Law of Georgia of 28 October 2011 No. 5172 - website, 07.11.2011

Law of Georgia of 20 December 2012 No. 117 - website, 29.12.2012

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014

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

Article 99. Consideration of the budget application and preparation of the draft republican budget of the Autonomous Republic🔗

1. The finance body shall review the budget applications and submit the main parameters of the draft republican budget of the Autonomous Republic to the executive body of the Autonomous Republic no later than October 15.

2. The executive body of the Autonomous Republic shall make the final decision on issues not agreed between spending institutions and the finance body.

3. The finance body shall submit the draft republican budget of the Autonomous Republic and the priorities document to the executive body of the Autonomous Republic no later than October 25.

Article 100. Submission of the draft law on the Republican Budget of the Autonomous Republic🔗

1. The Chairperson of the Government of the Autonomous Republic shall, no later than 1 November, submit to the Supreme Council the draft law on the Republican Budget of the Autonomous Republic together with the attached materials.

2. Together with the draft law on the Republican Budget of the Autonomous Republic, the document of the priorities of the Autonomous Republic corresponding to the draft budget shall be submitted to the Supreme Council of the Autonomous Republic for consideration.

3. The draft law on the Republican Budget of the Autonomous Republic shall contain at least the following information:

a) the balance of the Republican Budget of the Autonomous Republic according to the budget classification;

b) the revenues of the Republican Budget of the Autonomous Republic, the change in the balance, and the amount of appropriations provided for each spending institution according to the following items of the budget classification:

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

b.b) increase in non-financial assets;

b.c) increase in financial assets;

b.d) decrease in liabilities;

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

d) the amount of the surplus or deficit of the Republican Budget of the Autonomous Republic;

e) the amount of appropriations of the Republican Budget of the Autonomous Republic according to the programme classification;

f) the amount of the reserve fund;

f¹) projects financed by targeted credits and grants allocated by donors;

g) the priorities within the framework of which the spending institutions implement programmes/subprogrammes with funding from the Republican Budget of the Autonomous Republic, their description and objectives.

4. The materials attached to the draft annual budget law include:

a) an explanatory note on the draft Republican Budget of the Autonomous Republic, which contains information on forecasts of fiscal indicators;

b) a brief review of the execution of the Republican Budget of the Autonomous Republic for the current year;

c) a package of legislative amendments necessary for the entry into force of the annual budget law.

d) additional information on the programmes/subprogrammes defined by the budget, their expected results and performance evaluation indicators;

e) information on the revenues receivable by a Legal Entity of Public Law/non-entrepreneurial (non-commercial) legal entity provided for by subparagraphs “b 1.b” and “b 2.b” of Article 6 of this Code from any source permitted by the legislation of Georgia, the payments to be made from these sources and the change in the balance;

f) information on the revenues receivable by state enterprises attributed to the government sector provided for by subparagraph “b3.b” of Article 6 of this Code from any source permitted by the legislation of Georgia, payments to be made and the change in the balance;

g) Information on those investment/capital projects selected and evaluated in accordance with the criteria determined by the methodology provided for by paragraph 4 of Article 9 of this Code, for the commencement of which allocations are provided for in the budget of the planned year and/or in the fiscal indicators of the three years following the planned year. The said information shall include the description, value, implementation deadlines and expected results of the investment/capital project.

5. The information provided for in paragraph 3 of this Article, except for the information provided for by subparagraph „g“ of the same paragraph, shall be submitted for the past, current and planned budget years.

6. The information provided for by subparagraph „g“ of paragraph 3 of this Article shall be submitted for the planned budget year and for the three budget years following the planned year.

7. The draft law on the republican budget of the Autonomous Republic, with the attached materials, and the document on the priorities of the Autonomous Republic shall become accessible to the public upon submission to the representative body.

8. The budgets of the Legal Entities of Public Law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs „b 1.b“ and „b 2.b“ of Article 6 of this Code shall be approved in accordance with the procedure established by the legislation of Georgia.

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

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

Law of Georgia of 30 November 2017 No. 1395 – website, 08.12.2017.

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

Article 101. Provision of financial assistance in the budget of a municipality🔗

The executive body of the Autonomous Republic shall notify the relevant bodies of the municipality included in the Autonomous Republic of the projected amounts of financial assistance no later than 5 November.

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020.

Article 102. Consideration and approval of the draft law on the republican budget of the Autonomous Republic🔗

1. At a sitting of the Supreme Council of the Autonomous Republic, the draft law on the republican budget of the Autonomous Republic and the Government's report on the execution of the republican budget of the Autonomous Republic for the current year shall be presented by the Chairperson of the Government of the Autonomous Republic or by any member of the Government, under an assignment received by the respective legal act. The Supreme Council of the Autonomous Republic shall also hear the reports of the Finance-Budgetary and Economic Issues Committee and the State Audit Office.

2. Before the beginning of the new budget year, the Supreme Council of the Autonomous Republic shall approve the republican budget of the new budget year.

3. The law on the republican budget of the Autonomous Republic shall be published in accordance with the procedure established by the legislation of Georgia and shall be accessible to the public.

4. No later than 20 days after the approval of the budget, the executive body of the Autonomous Republic shall send to the Ministry of Finance of Georgia the document of the priorities of the Autonomous Republic corresponding to the approved budget.

Law of Georgia of 22 June 2012 No. 6550 – website, 29.06.2012.

Article 103. Introduction of amendments and/or additions to the law on the republican budget of the Autonomous Republic🔗

1. The introduction of amendments and/or additions to the assignments provided for by the annual budget, except for the procedure established by Article 92 of this Code, requires the introduction of amendments and/or additions to the annual budget.

2. The procedure for preparing, presenting, considering and adopting the draft law on the introduction of amendments and/or additions to the law on the republican budget of the Autonomous Republic shall be determined in accordance with the Rules of Procedure of the Supreme Council of the Autonomous Republic.

Article 104. General provision on the execution of the republican budget of the Autonomous Republic🔗

The execution of the republican budget of the Autonomous Republic shall be ensured, within the scope of its competence, by the executive body of the Autonomous Republic.

Article 105. Quarterly allocation of the republican budget of the Autonomous Republic🔗

1. Spending institutions shall, within 5 working days from the publication of the Law on the Republican Budget of the Autonomous Republic, submit to the financial body information on the quarterly and/or monthly indicative allocation of the assignments allocated to them by the budget.

2. The financial body, together with the spending institutions, shall review the submitted information and, taking into account the available resources, no later than 15 days from the publication of the budget law, adopt a decision on the quarterly and/or monthly allocation of the budget.

3. When making the quarterly and/or monthly allocation of the republican budget of the Autonomous Republic, for the purpose of financing the assignments, the free balance may be used, provided that the annual amount of the change of the balance envisaged by the annual budget remains unchanged.

4. When submitting the information envisaged by paragraph 1 of this Article, the spending institutions shall, through the electronic budget management system, also submit information on the revenues permitted by the legislation of Georgia (except budgetary revenues) of the budgets of the legal entities of public law and non-entrepreneurial (non-commercial) legal entities envisaged by subparagraphs „b1.b“ and „b2.b“ of Article 6 of this Code, which are subordinate to them and to their control, and on the payments to be made from these sources, which shall correspond to the information envisaged by subparagraph „e“ of paragraph 4 of Article 100 of this Code submitted to the respective representative body.

5. The information envisaged by paragraph 4 of this Article shall, within the time limit envisaged by this Article, also be submitted by the legal entities of public law and non-entrepreneurial (non-commercial) legal entities envisaged by subparagraphs „b1.b“ and „b2.b“ of Article 6 of this Code, which are not spending institutions of the republican budget of the Autonomous Republic or budgetary organizations subordinate to their control.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Article 106. Responsibility for the execution of the republican budget of the Autonomous Republic🔗

1. Budgetary organizations shall be responsible for making payments in accordance with the assignments and for collecting revenues within the scope of their competence.

2. The collection of taxes into the republican budget of the Autonomous Republic shall be ensured by the tax bodies in accordance with the procedure established by the legislation of Georgia.

3. (Removed - 12.12.2014, No. 2935).

4. The Supreme Council of the Autonomous Republic shall be entitled to monitor the legality of the expenditure of the funds of the republican budget of the Autonomous Republic by the Government of the Autonomous Republic and, in the event of detection of violations, to apply to the Chairman of the Government of the Autonomous Republic with a request to suspend the expenditure of budgetary funds.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Article 107. Accounting and reporting of the execution of the republican budget of the Autonomous Republic🔗

1. The account of the republican budget of the Autonomous Republic is opened in the unified account system of the State Treasury. The right to control the management and operation of this account, as well as to grant permission for the transfer of funds from this account, except for exceptional cases provided by the legislation of Georgia, shall be held only by the respective financial body.

2. (Removed - 12.12.2014, No. 2935).

3. The financial body of the Autonomous Republic shall record the payments made by each budgetary organization subordinate to each spending institution, which includes information on all stages of payment execution according to the budget classification. It shall also record the revenues provided by the budget classification.

4. The financial body of the Autonomous Republic shall, within 10 days after the end of each month, prepare a report showing the revenues, payments, change in balance and total balance of the republican budget of the Autonomous Republic.

Law of Georgia of 12 December 2014 No. 2935 - website, 24.12.2014.

Article 108. Quarterly review of the execution of the republican budget of the Autonomous Republic🔗

Within 1 month after the end of each quarter, the Government of the Autonomous Republic shall submit to the Supreme Council of the Autonomous Republic a quarterly review of budget execution on a cumulative basis, which includes a comparison of the actual volumes of revenues, payments (including funds allocated from the reserve fund), change in balance and total balance with the planned indicators for the respective period.

Article 109. Preparation and submission of the annual report and reporting on the execution of the republican budget of the Autonomous Republic🔗

1. Spending institutions, in accordance with the request of the financial body of the Autonomous Republic, shall prepare final accounts within the established deadlines and submit them to the financial body of the Autonomous Republic no later than 15 February. The financial body of the Autonomous Republic, in turn, shall prepare the annual report on the execution of the republican budget of the Autonomous Republic and submit it to the Government of the Autonomous Republic for consideration.

2. The Government of the Autonomous Republic shall submit to the Supreme Council of the Autonomous Republic the annual report on the execution of the republican budget of the Autonomous Republic no later than 3 months after the end of the budget year.

Law of Georgia of 13 April 2016 No. 4923 - website, 26.04.2016.

Article 110. Annual report on the execution of the republican budget of the Autonomous Republic🔗

The annual report on the execution of the republican budget of the Autonomous Republic shall include at least the following information on the execution of the annual budget:

a) the balance of the republican budget of the Autonomous Republic according to the budget classification;

b) comparison of budget revenues and expenditures according to the budget classification with the planned indicators for the respective period;

c) balances on budget accounts at the beginning and end of the year;

d) explanation of the discrepancy between the approved and adjusted assignments by programmes of spending institutions, if such discrepancy exceeds 30%;

e) explanation of the discrepancy between the adjusted assignments and the amounts paid by programmes of spending institutions, if such discrepancy exceeds 15%;

f) information on the state of allocation of funds from the reserve and the funds for the repayment of debts incurred in previous years and the enforcement of court judgments (if any);

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

h) annual indicators of the execution of the budgets of legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs „b 1.b“ and „b 2.b“ of Article 6 of this Code;

i) cash execution indicators of the budgets of state enterprises attributed to the government sector provided for by subparagraph „b3.b“ of Article 6 of this Code.

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

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

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

Article 111. Approval of the annual report on the execution of the republican budget of the Autonomous Republic🔗

The Supreme Council of the Autonomous Republic shall, before the end of the spring session, adopt a decision on the approval or non-approval of the annual report on the execution of the republican budget of the Autonomous Republic.

Law of Georgia of 13 April 2016 No. 4923 – website, 26.04.2016.

Article 112. (removed)🔗

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

Law of Georgia of 28 October 2011 No. 5172 – website, 07.11.2011.

Article 113. Restriction on the reallocation of assignments🔗

The reallocation of assignments of the republican budgets of the Autonomous Republics and the budgets of local self-governing units shall in 2010 be carried out within 10%.

Article 113¹. Loans issued from the State Budget before 1 January 2010🔗

1. In the case of overdue loan indebtedness arising from loans issued from the State Budget before 1 January 2010, if the respective contract provides for a means of repayment of the overdue loan indebtedness in any form, Article 63 of this Code shall be applied to the borrower. At the same time, in such a case the lender shall not be limited by the 6-month period provided for by paragraph 3 of Article 63 of this Code.

2. If the respective contract concluded in respect of loans issued from the State Budget before 1 January 2010 does not provide for a means of repayment of the overdue loan indebtedness in any form, the administration of the repayment of the overdue loan indebtedness in respect of the borrower shall be carried out by the tax authority, by decision of the Minister of Finance of Georgia, in accordance with the rules established by the Tax Code of Georgia. The procedure for applying to the Minister of Finance of Georgia and for the adoption of a decision by him on the matter provided for by this paragraph shall be determined by an Order of the Minister of Finance of Georgia.

3. The operation of this Article shall not extend to a borrower if:

a) court proceedings are pending regarding the repayment of the overdue loan indebtedness;

b) there is a court judgment or ruling that has entered into legal force regarding the repayment of the overdue loan indebtedness.

Law of Georgia of 29 June 2010 No. 3265 - LHG I, No. 3206.07.2010, Art. 198

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

Article 114. Measures related to the entry into force of the Code🔗

The executive and representative bodies of the autonomous republics shall, within 3 months from the entry into force of this Code, ensure that the relevant amendments are made to the legal acts in force in the territories of the autonomous republics.

Article 114¹. Measure related to the distribution and use of the net profit of enterprises operating with the State's share participation🔗

The Government of Georgia shall, before 15 March 2011, ensure the determination of the composition and rules of activity of the commission that considers proposals and adopts decisions on the distribution and use of the net profit of enterprises operating with the State's share participation.

Law of Georgia of 22 February 2011 No. 4210 – website, 10.03.2011.

Article 114². Transitional provisions related to the drafting of the programme budget🔗

With respect to the budgets approved by the respective bodies of the authorities of the autonomous republics and local self-governing units, until 1 January 2013, subparagraphs "q" and "r" of Article 6 and the first paragraph of Article 8 of this Code shall apply in the wording in force until 1 January 2012.

Law of Georgia of 28 October 2011 No. 5172 - website, 07.11.2011.

Article 114³. Transfer of funds from accounts in commercial banks of local self-government, autonomous republics, as well as legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by this Code into the single treasury account system🔗

The Government of Georgia shall, before 1 January 2015, develop the rule for the transfer of funds from accounts in commercial banks of local self-government, autonomous republics, as well as legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by this Code into the single treasury account system.

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

Article 114⁴. Definition of legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by this Code🔗

1. The provisions defined by this Code for legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs „b1“ and „b2“ of Article 6 of this Code shall extend to public schools, early and preschool upbringing and education institutions and other preschool upbringing institutions until the end of the 2025 budget year.

1¹. The Ministry of Finance of Georgia shall, 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, ensure, within the period defined by paragraph 1 of this Article, the phased extension to the institutions provided for by the same paragraph of the provisions defined by this Code for legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs „b1“ and „b2“ of Article 6 of this Code.

2. The provisions defined by this Code for legal entities of public law and non-entrepreneurial (non-commercial) legal entities provided for by subparagraphs „b1.b“ and „b2.b“ of Article 6 of this Code shall extend to them for the 2016 budget year, except for those legal entities that are founded by self-governing cities or their bodies or are subject to their control.

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

Law of Georgia No. 5371 of 8 June 2016 – website, 24.06.2016.

Law of Georgia No. 498 of 23 March 2017 – website, 27.03.2017.

Law of Georgia No. 1722 of 13 December 2017 – website, 22.12.2017.

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

Law of Georgia No. 36 of 29 December 2020 – website, 30.12.2020.

Law of Georgia No. 373 of 16 March 2021 – website, 18.03.2021.

Law of Georgia No. 1138 of 15 December 2021 – website, 20.12.2021.

Law of Georgia No. 3859 of 30 November 2023 – website, 15.12.2023.

Law of Georgia No. 133 of 13 December 2024 – website, 28.12.2024.

Law of Georgia No. 491 of 16 April 2025 – website, 16.04.2025.

Article 114⁵. Equalizing🔗

transfer

system

added

value

tax

distribution

system

transition

transitional

period

1. The transitional period of transition from the equalizing transfer system to the value added tax distribution system is from 2019 through 2026.

2. In 2019, as a result of the distribution of value added tax, the projected indicator of the amount receivable by each municipality shall not exceed by more than 25% the aggregate indicator of the equalizing transfer determined for the same municipality in 2018 and the income tax determined by paragraph 6 of Article 77 of this Code.

3. Resources exceeding the percentage indicator determined by paragraph 2 of this Article shall, in accordance with paragraph 4 of this Article, be directed to the revenues of those municipalities whose projected indicator of value added tax receivable is less than the aggregate indicator of the equalizing transfer determined for the same municipalities in 2018 and the income tax projected on the basis of paragraph 6 of Article 77 of this Code.

4. The distribution of the resource provided for by paragraph 3 of this Article among the municipalities determined by the same paragraph shall be carried out in proportion to the share that the shortfall in the revenues of each municipality has in the aggregate indicator of the shortfall of all municipalities.

5. In 2020−2026, the maximum percentage indicator of the growth of the projected volume of revenue receivable by each municipality as a result of the distribution of value added tax compared to the previous year shall be determined by the Law on the State Budget.

6. The percentage indicator determined on the basis of paragraph 5 of this Article shall not be less than 25% in each year.

7. Resources exceeding the percentage indicator determined on the basis of paragraph 5 of this Article shall in 2023 be directed as follows:

a) The said resource shall at the first stage be directed to the revenues of the municipality whose value added tax receivable is less than 5 million GEL, in the amount that ensures the determination of the projected indicator of value added tax of this municipality at 5 million GEL;

b) The remaining resource shall, in accordance with paragraph 4 of this Article, be directed to the revenues of the municipality whose projected indicator of value added tax receivable 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 indicator of value added tax receivable, in the case of distribution without the said restriction, is less than 15 million GEL.

7². Resources exceeding the percentage indicator determined on the basis of paragraph 5 of this Article shall in 2025-2026 be directed as follows:

a) This resource shall, at the first stage, be directed to the revenues of that municipality whose projected indicator of value added tax receivable by it, in the case of distribution without the restriction provided for by paragraph 5 of this Article, exceeds GEL 15 million, and in the case of the said restriction is less than GEL 15 million, in the amount that ensures the topping up to GEL 15 million of the projected indicator of value added tax receivable by this municipality;

b) the remaining resource shall be directed to the revenues of that municipality whose projected indicator of value added tax receivable by it is less than the corresponding indicator of the previous year, in the proportion that the shortfall in the revenues of each municipality has in the total indicator of the shortfalls in the revenues of all municipalities.

8. The Ministry of Finance of Georgia, for the purpose of reflecting it in the draft law on the State Budget, shall calculate the percentage indicator of value added tax receivable by each municipality in accordance with Article 71 of this Code and this Article.

Law of Georgia of 24 June 2016 No. 5589 - website, 12.07.2016.

Law of Georgia of 13 December 2017 No. 1722 - website, 22.12.2017.

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

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

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

Law of Georgia of 13 December 2024 No. 133 – website, 28.12.2024.

Law of Georgia of 10 December 2025 No. 1220 – website, 19.12.2025.

Article 114⁶. Transitional provisions related to the reflection in the single budget of the State of state enterprises attributed to the government sector as provided for by the sectorization of state enterprises🔗

From 1 January 2027, for the purpose of transferring the receipts and payments of state enterprises attributed to the government sector to the service of the State Treasury:

a) the Ministry of Finance of Georgia shall, no later than 15 February 2023, approve the list of information to be submitted quarterly and annually by state enterprises attributed to the government sector to the Ministry of Finance of Georgia, which shall indicate the respective deadlines;

b) the Ministry of Finance of Georgia shall, by 15 July 2023, approve the action plan for the phased transfer of state enterprises attributed to the government sector to the service of the State Treasury in 2024−2026;

c) the Government of Georgia shall, before 1 January 2024, develop the rules for transferring the funds of state enterprises attributed to the government sector from commercial bank accounts to the single treasury account system.

Law of Georgia of 15 December 2021 No. 1138 – website, 20.12.2021.

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

Law of Georgia of 13 December 2024 No. 133 – website, 28.12.2024.

Article 114⁷. Distribution of Some Revenues between the State Budget of Georgia and Municipal Budgets According to Percentage Indicators until 2024🔗

1. The revenue provided for by column 11.2 of the Annex to this Code ("Distribution of Revenues between the State, Republican and Municipal Budgets of Georgia, the Autonomous Republics of Abkhazia and Adjara According to Percentage Indicators") shall be distributed between the State Budget of Georgia and municipal budgets from 1 June 2023 to 1 January 2024 as follows:

No.

Name of revenues

State Budget of Georgia

Republican Budgets of the Autonomous Republics of Abkhazia and Adjara

Municipal Budgets

11.2

Located on the territory of a municipality (except for municipalities of the autonomous republics) and not in the use of municipalities

60

40

2. The revenue provided for by column 40.8.2 of the Annex to this Code ("Distribution of Revenues between the State, Republican and Municipal Budgets of Georgia, the Autonomous Republics of Abkhazia and Adjara According to Percentage Indicators") shall be distributed between the State Budget of Georgia and municipal budgets from 1 June 2023 to 1 January 2024 as follows:

No.

Name of revenues

State Budget of Georgia

Republican Budgets of the Autonomous Republics of Abkhazia and Adjara

Municipal Budgets

40.8.2

On the territory of municipalities (except for municipalities of the autonomous republics)

25

75

Law of Georgia No. 2791 of 2 May 2023 – website, 19.05.2023.

Article 115. Invalidated Normative Acts🔗

Upon the entry into force of this Code, the following shall be declared invalid:

a) Law of Georgia of 24 April 2003 "On the Budgetary System of Georgia" (Legislative Herald of Georgia, No. 12, 21.05.2003, 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" (Legislative Herald of Georgia, No. 20, 09.06.2006, Art. 170);

d) Law of Georgia of 14 March 2008 "On Funds for Future Generations and Sustainable Development" (Legislative Herald of Georgia, No. 7, 26.03.2008, Art. 37);

e) Law of Georgia of 14 March 2008 "On the Global Competitiveness of the Financial Sector" (Legislative Herald of Georgia, No. 7, 26.03.2008, Art. 28).

Article 116. Entry into force of the Code🔗

1. This Code, except for subparagraph „c“ of paragraph 1 of Article 36 of this Code, paragraph 4 of Article 37, subparagraph „i“ of paragraph 3 of Article 38, subparagraph „i“ of Article 56, subparagraph „c“ of paragraph 4 and subparagraph „h“ of paragraph 10 of Article 77, subparagraph „g“ of Article 87, subparagraph „c“ of paragraph 1 of Article 98, subparagraph „g“ of paragraph 3 of Article 100 and subparagraph „h“ of Article 110, shall enter into force from 1 January 2010.

2. Subparagraph „c“ of paragraph 1 of Article 36 and subparagraph „i“ of paragraph 3 of Article 38 of this Code shall enter into force from 1 January 2011.

3. (Removed – 28.10.2011, No. 5172).

4. (Removed – 28.10.2011, No. 5172).

5. (Removed – 28.10.2011, No. 5172).

6. Paragraphs 25, 25.1, 25.2 and 25.3 of the Annex to this Code („Distribution of revenues between the state, the republican and local self-governing unit budgets of Georgia, the Autonomous Republics of Abkhazia and Adjara according to percentage indicators“) shall be in force until 1 December 2010.

7. The operation of Article 45¹ of this Code shall be suspended until 1 January 2028.

Law of Georgia of 29 June 2010 No. 3235 - LHG I, No. 3409.07.2010, Art. 205

Law of Georgia of 28 October 2011 No. 5172 - website, 07.11.2011

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

President of Georgia Mikheil Saakashvili

Tbilisi,

18 December 2009.

No. 2440 – IIs

Annex

Distribution of revenues between the state, the republican and municipal budgets of Georgia, the Autonomous Republics of Abkhazia and Adjara according to percentage indicators

Law of Georgia of 15 July 2020 No. 6946 – website, 28.07.2020

No.

Name of revenue

State Budget of Georgia

Republican budgets of the Autonomous Republics of Abkhazia and Adjara

Municipal

budgets

1

2

3

4

5

1

Income tax:

1.1

Income tax, except for the income tax paid by taxable objects registered in the territory of the autonomous republics

100

1.2

Income tax paid by taxable objects registered in the territory of the autonomous republics

100

1.3

(Removed - 14.12.2018, No. 4017)

100

2

Profit tax

100

3

Property tax

100

4

Value added tax

80

20

5

Excise

100

6

Import tax

100

7

Other taxes (including fines collected by a tax authority and/or a customs authority that are not accrued to a specific tax), except for abolished taxes

100

8

Interest (yield) from financial assets of a separate nature, namely, from deposits (from securities, except shares), from loans, from receivables and other income from interest, designated for:

8.1

the central government

100

8.2

the government of the autonomous republics

100

8.3

the municipality

100

9

Income from dividends and from the profit of the National Bank of Georgia:

9.1

From the profit of enterprises operating with the State's share participation and private enterprises

100

9.2

From the profit of enterprises operating with the share participation of the authorities of autonomous republics and private enterprises

100

9.3

From the profit of enterprises operating with the share participation of local authorities and private enterprises

100

9.4

From the profit of the National Bank of Georgia

100

10

Fee for the use of natural resources, paid:

10.1

For natural resources extracted on the territory of autonomous republics

100

10.2

For natural resources extracted on the territory of municipalities (except municipalities of autonomous republics)

100

11

Income from the transfer of state land to lease and management (usufruct, rent and other), which:

11.1

is located on the territory of autonomous republics and is not in the use of autonomous republics

65

35

11.2

is located on the territory of a municipality (except 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 municipalities of autonomous republics)

100

12

Income from the transfer of land in the ownership of autonomous republics to management (usufruct, rent, lease and other)

35

65

13

Income from the transfer of land in the ownership of municipalities to management (usufruct, rent, lease and other)

100

14

Income from the fee for the issuance of a use licence, paid:

14.1

by the respective services of central government bodies

100

14.2

by the respective services of the bodies of the authorities of autonomous republics

100

15

Rent (except for land), paid:

15.1

by the respective services of central government bodies

100

15.2

by the respective services of the bodies of the authorities of autonomous republics

100

15.3

by an authorised person of a municipal body

100

16

(removed)

100

17

Licence fee, paid:

17.1

by the respective services of central government bodies

100

17.2

by the respective services of the bodies of the authorities of autonomous republics

100

18

Permit fee, paid:

18.1

by the respective services of central government bodies

100

18.2

by the respective services of the bodies of the authorities of autonomous republics

100

18.3

by an authorised person of a municipal body

100

19

State certificate fee

100

20

Registration fee

100

21

State expert examination fee

100

22

State duty, paid:

22.1

for cases to be considered in the courts of Georgia

100

22.2

for the issuance on the territory of Georgia of documents certifying citizenship and identity, for the registration of civil status acts, for the consideration on the territory of Georgia of citizenship and emigration-immigration matters:

22.2.1

by the respective services of central government bodies, except when a Legal Entity of Public Law operating in the field of governance of the Ministry of Justice of Georgia ensures the receipt of documentation required for issuing a Georgian visa or extending its validity, as provided for by the Law of Georgia 'On the Legal Status of Aliens and Stateless Persons', and the placement of a visa in a travel document or the electronic issuance of a Georgian visa, and/or the municipality performs this on the basis of a contract delegating its authority

100

22.2.2

by the respective services of the authorities of the autonomous republics

100

22.2.3

by an authorized person of a municipal body, except when a Legal Entity of Public Law operating in the field of governance of the Ministry of Justice of Georgia ensures the receipt of documentation required for issuing a Georgian visa or extending its validity, as provided for by the Law of Georgia 'On the Legal Status of Aliens and Stateless Persons', and the placement of a visa in a travel document or the electronic issuance of a Georgian visa, and/or the municipality performs this on the basis of a contract delegating its authority

100

22.3

other state fee, collected:

22.3.1

by the respective services of central government bodies

100

22.3.2

by the respective services of the authorities of the autonomous republics

100

22.3.3

by an authorized person of a municipal body

100

23

consular fee

100

24

fee for copying public information, collected:

24.1

by the respective services of central government bodies

100

24.2

by the respective services of the authorities of the autonomous republics

100

24.3

by an authorized person of a municipal body

100

25

(repealed - 9 February 2023, No. 2576)

26

revenue from the issuance of a permit for the placement of outdoor advertising

100

27

fee for deferral of conscription of conscripts into national military service

100

28

gambling business fee (except that established for organizing a lottery)

100

281

gambling business fee established for organizing a lottery

100

29

fee for cleaning of a populated area

100

30

fee for the infrastructure of the rehabilitation area of cultural heritage

100

31

(repealed - 20 July 2018, No. 3222)

32

fee for a construction permit (except for the construction of radiation and nuclear facilities of special importance)

100

321

fee for expedited service for the issuance of an act (amendment thereto) on confirmation of compliance with permit conditions (commissioning) of construction (except for the construction of radiation or nuclear facilities of special importance)

100

322

(repealed - 20 July 2018, No. 3222)

323

Fee for the expedited service of issuing an act on construction carried out without a permit or in violation of the requirements of construction documentation, in the case of acknowledgement of a construction offence by the construction offender

100

33

Revenue from the issuance of a permit for regular passenger transportation within the administrative boundaries of a municipality

100

331

Revenue from the issuance of a permit for transportation by light vehicle − taxi (category M1) in the capital of Georgia

100

34

Other fees collected:

34.1

by the respective services of central government bodies

100

34.2

by the respective services of the authorities of autonomous republics

100

34.3

by an authorised person of a municipal body

100

35

Goods and services sold on a non-market basis:

35.1

Revenue from the nominal value of excise stamps

100

35.2

Revenue from the sale of other goods, collected:

35.2.1

by the respective services of central government bodies

100

35.2.2

by the respective services of the authorities of autonomous republics

100

35.2.3

by an authorised person of a municipal body

100

35.3

Revenue from services provided:

35.3.1

by the respective services of central government bodies

100

35.3.2

by the respective services of the authorities of autonomous republics

100

35.3.3

by an authorised person of a municipal body

100

35.4

Revenue from the transfer of property of nationwide importance to lease or management (usufruct, rent and other)

100

35.5

Revenue from the transfer of state property (except land) to lease or management (usufruct, rent and other), which:

35.5.1

is located on the territory of autonomous republics and is in state use

65

35

35.5.2

is located on 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 the municipalities of autonomous republics)

100

35.6

Revenue from the transfer of property in the ownership of autonomous republics (except land) to lease or management (usufruct, rent and other)

35

65

35.7

Revenue from the transfer of property in the ownership of municipalities (except land) to lease or management (usufruct, rent and other)

100

35.8

Revenue from the transfer of other state property (except land) to lease or management (usufruct, rent and other), collected:

35.8.1

by the respective services of central government bodies

100

35.8.2

by the respective services of the authorities of autonomous republics

100

35.8.3

by an authorised person of a municipal body

100

36

Revenue from sanctions (fines, penalties)

36.1

Revenue from administrative offences in various fields, collected:

36.1.1

by the respective services of central government bodies

100

36.1.2

By the respective services of the authorities of the autonomous republics

100

36.1.3

By an authorized person of a municipal body

100

36.2

Revenue from fines paid for violation of traffic rules

40

60

36.3

Revenue from fines paid for illegal crossing of the border

100

36.4

Revenue from penalties paid for violation of the repayment term of a granted loan, collected:

36.4.1

By the respective services of central government bodies

100

36.4.2

By the respective services of the authorities of the autonomous republics

100

36.4.3

By an authorized person of a municipal body

100

36.5

Revenue from fines paid for violations detected in architectural and construction activity, collected:

36.5.1

By the respective services of central government bodies

100

36.5.2

By the respective services of the authorities of the autonomous republics

100

36.5.3

By an authorized person of a municipal body

100

36.6

Revenue from fines provided for by the Criminal Code of Georgia

100

36.7

Revenue from other fines and penalties, collected:

36.7.1

By the respective services of central government bodies

100

36.7.2

By the respective services of the authorities of the autonomous republics

100

36.7.3

By an authorized person of a municipal body

100

37

Revenue from current transfers, donations and charity (except grants), allocated:

37.1

To the central government

100

37.2

To the authorities of the autonomous republics

100

37.3

To municipalities

100

38

Revenue from compensation amounts for change of designated purpose of agricultural land plots and from compensation for damage caused by deterioration of land quality as a result of use of agricultural land for non-designated purpose

100

39

Revenue caused by change in currency exchange rate, received:

39.1

By the central government

100

39.2

By the authorities of the autonomous republics

100

39.3

By municipal bodies

100

40

Receipts from non-financial assets:

40.1

Receipts from sale of fixed assets, including:

40.1.1

From sale of fixed assets of national importance

100

40.1.2

From sale of state fixed assets which:

40.1.2.1

Are located in the territory of the autonomous republics

60

40

40.1.2.2

Are in the use of the autonomous republics

100

40.1.2.3

Are located in the territory of municipalities (except municipalities of the autonomous republics and privatization of forests located within the territorial boundaries of settlements provided for by the Law of Georgia "On State Property", the amount received from which is fully credited to the municipal budget)

60

40

40.1.2.4

Are in the use of municipalities (except municipalities of the autonomous republics)

100

40.2

Receipts from sale of fixed assets in the ownership of the autonomous republics

35

65

40.3

Revenue from the sale of fixed assets owned by municipalities

100

40.4

Revenue from the sale of licences, carried out:

40.4.1

by the respective services of central government bodies

100

40.4.2

by the respective services of autonomous republic government bodies

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, work in progress, finished products and goods purchased for further sale), carried out:

40.5.2.1

by the respective services of central government bodies

100

40.5.2.2

by the respective services of autonomous republic government bodies

100

40.5.2.3

by an authorised person of a municipal body

100

40.6

Revenue from the sale of valuables, carried out:

40.6.1

by the respective services of central government bodies

100

40.6.2

by the respective services of autonomous republic government bodies

100

40.6.3

by an authorised person of a municipal body

100

40.7

Revenue from non-produced assets:

40.7.1

Revenue from the sale of non-agricultural land in state ownership, located:

40.7.1.1

in the territory of autonomous republics

50

50

40.7.1.2

in the territory of municipalities (except municipalities of 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 non-agricultural land owned by municipalities

100

40.8

Revenue from the sale of agricultural land in state ownership, located:

40.8.1

in the territory of autonomous republics

35

65

40.8.2

in the territory of municipalities (except municipalities of 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 agricultural land owned by municipalities

100

40.11

Revenue from mineral resources

100

40.12

Revenue from a licence for the use of the radio frequency spectrum

100

40.13

Revenue from other natural assets

100

40.14

Revenue from non-produced intangible assets (patents, leasing contracts and other similar contracts, as well as acquired goodwill), collected:

40.14.1

by the respective services of central government bodies

100

40.14.2

by the respective services of autonomous republic government bodies

100

40.14.3

by an authorised person of a municipal body

100

40.15

Revenue from recognition of the right of ownership to land

100

41

Revenue from financial assets and liabilities, intended:

41.1

for central government

100

41.2

for autonomous republic governments

100

41.3

For municipalities

100

42

Environmental impact assessment fee

100

43

Container fee

100

Note: 19% of the receipts received in the form of value added tax provided for by column 4 of this table is the sum of taxes to be distributed to the budgets of all municipalities, the distribution of which for each municipality shall be carried out in accordance with the procedure established by Articles 71 and 114⁵ of this Code.

Law of Georgia No 3439 of 13 July 2010 - LHG I, No 3613.07.2010, Art. 218

Law of Georgia No 3775 of 28 October 2010 - LHG I, No 63, 10.11.2010, Art. 402

Law of Georgia No 3806 of 12 November 2010 - LHG I, No 66, 03.12.2010, Art. 414

Law of Georgia No 3967 of 10 December 2010 - LHG I, No 74, 24.12.2010, Art. 448

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

Law of Georgia No 6572 of 28 June 2012 - website, 10.07.2012

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

Law of Georgia No 3604 of 8 May 2015 - website, 15.05.2015

Law of Georgia No 912 of 1 June 2017 - website, 21.06.2017

Law of Georgia No 2265 of 4 May 2018 – website, 24.05.2018

Law of Georgia No 3222 of 20 July 2018 – website, 13.08.2018

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

Law of Georgia No 4853 of 25 June 2019 - website, 02.07.2019

Law of Georgia No 4918 of 28 June 2019 – website, 04.07.2019

Law of Georgia No 6295 of 12 June 2020 – website, 19.06.2020

Law of Georgia No 6946 of 15 July 2020 – website, 28.07.2020

Law of Georgia No 1196 of 22 December 2021 – website, 28.12.2021

Law of Georgia No 2576 of 9 February 2023 – website, 27.02.2023

Law of Georgia No 2791 of 2 May 2023 – website, 19.05.2023

Law of Georgia No 3539 of 21 September 2023 – website, 12.10.2023

Law of Georgia No 3820 of 30 November 2023 – website, 19.12.2023

Law of Georgia No 4030 of 15 December 2023 – website, 25.12.2023

Law of Georgia No 133 of 13 December 2024 – website, 28.12.2024

Law of Georgia No 1285 of 17 December 2025 – website, 22.12.2025