Amendments to the Budget Code are aimed at the increased effectiveness and efficiency of public finance for the ultimate improvement of public funds accounting, their better consolidation and higher transparency of the budgetary process. 

 

Review of the referred draft law has been actively pursued within the Parliamentary Committees and Factions. Ministry of Finance of Georgia considered the proposals and suggestions made by Members of Parliament (MPs), thus reflecting them in the draft law. Significant differences between the original draft and the one considered for the Second Hearing inter alia relate to the following principal topics:

 

In line with the substantial adjustment considered by the Ministry of Finance of Georgia, legal entities of public law (LEPLs), non-commercial NGOs, local authorities and autonomous republics will be entitled to generate additional revenues and keep account at commercial banks. They may ultimately transfer the excess funds accumulated at their accounts to the State Treasury. Interest earned at the account will be deemed as their income and managed in the manner they themselves decide.

 

Regulation Commissions will not move to the treasury service and be deemed as an exception from this initiative. 

 

In addition, LEPLs based on membership, will also be captured in the list of exceptions and will no more move to the treasury service, provided they are not funded from the State Budget.