The Ministry of Finance of Georgia has submitted the final draft of the State Budget for 2026 to the Parliament. Transparency International Georgia has studied the draft law.

Key Findings

• In 2026, state budget revenues will increase by 3.2 billion GEL and will reach 30.8 billion GEL. Such an increase will be driven by new debt and an increase in tax revenues;
• The salaries of the Prime Minister, President and Speaker of Parliament will increase from 14,600 GEL to 16,000 GEL. The salary of a minister will increase from 12,410 GEL to 13,600 GEL, and that of a member of Parliament from 11,680 GEL to 12,800 GEL.
• The pension for persons under 70 years of age increases by 20 GEL and becomes 370 GEL, while the pension for persons aged 70 and over increases by 45 GEL and will be 495 GEL;
• The number of employees in budgetary organizations increases by 166. The number of employees increases most in the Prosecutor's Office, the Audit Service and the Ministry of Internal Affairs;
• The number of employees in the Ministry of Foreign Affairs decreases by 79. The reduction will mainly affect people working on Georgia's integration into European and Euro-Atlantic structures;
• The salaries of employees in the public sector increase by at least 10%. The increase in salaries leads to an increase in the annual amount allocated for labor remuneration by 385 million GEL;
• The volume of foreign grants to be received in 2026 is 85 million GEL, which is 2 times less than the figure for 2024, but 27 million GEL more than in 2025. As in 2025, EU grants remain at 0;
• 6.1 billion GEL has been allocated for capital projects, which is 565 million GEL less than in 2025. The largest reductions are in funding for the construction of highways and the development of educational and scientific infrastructure. The largest increase is in funding for the Ministry of Health, which is 849 million GEL, reaching 9.7 billion GEL;
• Funding for agencies working on defense and security is increasing by 486 million GEL;
• 53 million GEL has been allocated for the development of the Anaklia deep-sea port in the 2026 budget. In the first version of the budget draft, this amount was 153 million GEL, and in the final version it was reduced by 100 million GEL;
• In 2026, the government will take on debt of 5.1 billion GEL. Of this, 3.3 billion GEL is external debt, of which 1.4 billion GEL will be used to refinance Eurobonds. By the end of 2026, government debt will reach 38.2 billion GEL, which will be 33.5% of the projected GDP.

State Budget Revenues

In 2026, Georgia's state budget revenues will be 30.8 billion GEL, which is 3.2 billion GEL (12%) more than the 2025 budget revenues.

The largest contribution to the increase in revenues is made by debt borrowing. The government will borrow 1.6 billion GEL more in 2026 than in 2025. The reason for such a high increase is the refinancing of Eurobonds issued in 2021.

Tax revenues increase by 1.3 billion GEL. Among them, the amount received through income tax increases by 852 million GEL. By 608 million GEL - from value added tax (VAT), and by 130 million GEL - from profit tax.

According to the Ministry of Finance, the volume of grants received from international organizations and governments in 2026 is 85 million GEL, which is 2 times less than the figure for 2024, although it is 27 million GEL more than the figure for 2025. In 2025-2026, energy projects will mainly be financed by foreign grants. From the governments of foreign states, only a grant from the German government is reflected in the 2026 budget - 30 million GEL.

Data source: Ministry of Finance

Budget Expenditures

The 2026 state budget expenditures (payables) will be 30.9 billion GEL, which is 2.9 billion GEL (11%) more than the 2025 budget expenditures.

The number of employees in budgetary organizations increases by 166. The number of employees increases most in the Prosecutor's Office (by 150) and the Audit Service (by 100), the main reason for which is the increase in the functions of these agencies due to the merger of other agencies. The number of employees in the Ministry of Finance increases by 94, in the direction of economic crime prevention. The number of employees in the Ministry of Internal Affairs increases by 60.

Starting from 2026, 6 departments will be abolished, where a total of 456 people worked in 2025. These are: the Anti-Corruption Bureau, the Special Investigation Service, the National Security Council Office, the Civil Service Bureau, the Business Ombudsman's Office and the South Ossetian Administration. In addition, employment in the Ministry of Foreign Affairs will be reduced by 79. The reduction will mainly affect people working on Georgia's integration into European and Euro-Atlantic structures. The number of employees in the Ministry of Education will be reduced by 61.

Administrative expenses, which include public sector wages and the purchase of goods and services, will increase by 581 million GEL. 3.4 billion GEL (an increase of 385 million) will be spent on wages, and 2.7 billion GEL (an increase of 196 million) on the purchase of goods and services.

The basic salary of public sector employees is increasing from 1,460 GEL to 1,600 GEL, which will lead to a 10% increase in salaries in most agencies.

Due to the increase in official salaries, the salaries of the Prime Minister, President and Speaker of Parliament are increasing from 14,600 GEL to 16,000 GEL. The salary of a minister is increasing from 12,410 GEL to 13,600 GEL, and that of a member of Parliament from 11,680 GEL to 12,800 GEL. The above-mentioned amounts also include income tax.

6.1 billion GEL has been allocated for capital projects, which is 565 million GEL less than the figure for 2025. The largest reductions are being made in funding for the construction of expressways and the development of educational and scientific infrastructure.

According to the draft budget for 2026, compared to 2025, the funding of the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Protection increases the most - by 849 million GEL and reaches 9.7 billion GEL. From 2026, the pension for persons up to 70 years old increases by 20 GEL and becomes 370 GEL, while the pension for persons aged 70 and over increases by 45 GEL and becomes 495 GEL. The amount allocated for pensions increases by 517 million GEL. The amount allocated for social assistance increases by 118 million GEL. The amount allocated for healthcare increases by 377 million GEL.

The budget of the Ministry of Defense increases by 160 million GEL and will be 1.9 billion GEL. The increase in the ministry's budget is mainly due to a 10% increase in salaries.

The budget of the Ministry of Internal Affairs increases by 152 million GEL. The increase is due to a 10% increase in the number of employees and the salary of police officers.

The budget of the State Security Service is increasing by 129 million GEL, the Prosecutor's Office by 28 million GEL, and the State Special Protection Service by 17 million GEL.

In total, the funding of agencies working on defense and security is increasing by 486 million GEL.

The Ministry of Economy plans to spend 53 million GEL on the development of the Anaklia deep-sea port, despite the fact that an agreement with an investor has not yet been signed. In the first version of the 2026 budget draft, this amount was 153 million GEL, and in the final version it was reduced by 100 million GEL. In 2025, 154 million GEL was allocated for the construction of the port, although as of November 27, only 51 million GEL had been spent.

Data source: Ministry of Finance

Budget deficit and state debt

In 2026, the deficit of the unified state budget, which also includes the budgets of local self-government units, will be 2.9 billion GEL, which is 2.5% of GDP. In 2025, the deficit was also 2.5%.

In 2026, the government will take on 5.1 billion GEL of debt, but at the same time it will repay 2.9 billion GEL of previously taken debt. As a result, the government's debt will increase by 2.1 billion GEL. Of the new 5.1 billion GEL of debt, 1.8 billion GEL will be domestic debt, and 3.3 billion GEL will be foreign debt. Of this, 1.4 billion GEL of foreign debt will be used to refinance Eurobonds issued in 2021.

The government plans to borrow new foreign debt mainly from Western financial institutions and governments. By the end of 2026, government debt will be 38.2 billion GEL, which is 33.5% of the projected GDP. 65% of government debt is foreign debt.

Data source: Ministry of Finance