The Regional Policy and Self-Government Committee discussed the Draft Law on State Budget 2025, introduced by the First Deputy Finance Minister, Giorgi Kakauridze.

According to him, the amendments to the country’s main financial document were necessitated by higher-than-planned economic growth and updated macroeconomic parameters.

He stated that, under the 2025 state budget draft, additional needs and priority programs will be financed, which will require a revised distribution of appropriations among ministries.

Specifically, the funding of the IDPs, Labour, Health, and Social Protection Ministry will increase by 133 million GEL.

A new budget will also be approved by the end of the year for the Environmental Protection and Agriculture Ministry, whose appropriations will increase by 248 million GEL.

Budgetary increases are also planned for the Ministries of Defence and Sport, as well as for the State Security Service.

Giorgi Kakauridze also informed the committee about the state agencies whose funding is expected to decrease.

“When drafting the 2025 budget, the Regional Development and Infrastructure Ministry was considered as a single entity. Accordingly, while preparing this year’s budget amendment package, part of its appropriations was consolidated into a single line. As a result, under the proposed 2025 state budget amendments, the Ministry’s appropriations will be reduced by 201.7 million GEL, amounting to 2,923.3 million GEL,” - stated the reporter.

According to him, the reduction will affect funding allocated for road infrastructure, construction and rehabilitation of educational facilities, tourism infrastructure, and certain components of sports infrastructure construction and rehabilitation.

Giorgi Kakauridze explained that these adjustments are linked to extended tender procedures and internal reallocations between agencies.

The Committee approved the Draft.

At the committee meeting, the Deputy Infrastructure Minister, Mzia Giorgobiani, introduced a document— Letter-Agreement of the Change No. 1 to the Loan Agreement of 27 August 2019 between Georgia and the Asian Development Bank.

According to her, the amendment concerns the redistribution of financing shares for the Kvesheti–Kobi road project.

Specifically, the ADB’s share in this project increases from 65.6% to 82%.

“The Ministry of Infrastructure requested that the ADB consider the possibility of retroactively financing the portion already covered by the state budget, which would replace the exhausted share of the EBRD. The ADB approved this request, on the basis of which the Letter-Agreement of the Change No. 1 was prepared. The document was signed on 10 November 2025,” - she noted.

She added that, under the document, the financial terms of the loan with the Bank remain unchanged.

The committee approved the document.