May 31, 2019

Fiscal stimulus remained strong in April

Quick Update

  • The budget tax revenues increased by 8.5% YoY in April 2019 with the VAT revenues up by 7.6% YoY. Turnover of VAT payers remained strong increasing by 12.2% YoY. Over the same period, total expenditures went up by 23.4% YoY mostly reflecting higher capital spending with 173.0% YoY increase as the growth of current expenditures stood at 8.8%. 
  • Consolidated budget posted a deficit of 140.3 mln GEL – an estimated 4.2% of the same month GDP being mostly financed by the drawdown of treasury deposits (124.1 mln GEL), while the share of debt and privatization receipts in the deficit financing were negligible. 
  • The budget deficit in the first four months of 2019 stood at around 156.5 mln GEL compared to the surplus of 159.3 mln GEL in the same period of the previous year.
  • The wider budget deficit continues to support the growth in 2019 together with the advance payments made at the very end of 2018 (see more in TBC Economic Review, Insights #5, 6 and 10).
  • Despite expansionary fiscal stance, the trade balance continued to have improving dynamics in April as well (see note on trade).
Download File