Georgian Finance Ministry

The Ministry of Finance of Georgia is the central executive body responsible for the financial and economic policy of the country. Its overarching mission is to ensure macroeconomic stability, promote sustainable economic growth, and manage public finances effectively and transparently.

The Ministry's functions are diverse and crucial to the nation's prosperity. These include:

• Fiscal Policy Formation: The Ministry develops and implements the government's fiscal policy, setting strategic goals for government revenue, expenditure, and debt management. This involves analyzing economic trends, forecasting future performance, and proposing adjustments to fiscal strategies to optimize resource allocation and promote economic growth.
• Budgeting and Treasury Management: A core function is the preparation of the annual state budget, outlining government spending priorities across various sectors like healthcare, education, infrastructure, and defense. The Ministry also manages the treasury, ensuring the efficient collection of tax revenues and disbursement of funds to government agencies. This involves maintaining robust accounting systems and ensuring compliance with financial regulations.
• Tax Policy and Administration: The Ministry plays a vital role in shaping tax policy, aiming to create a fair, efficient, and competitive tax system that encourages investment and economic activity. It oversees the Revenue Service, responsible for tax collection, enforcement, and taxpayer services. The Ministry continually strives to simplify tax procedures and combat tax evasion.
• Debt Management: Managing Georgia's public debt responsibly is a key priority. The Ministry develops and implements a debt management strategy to minimize borrowing costs, diversify funding sources, and ensure the country's debt sustainability. This involves monitoring debt levels, analyzing market conditions, and negotiating favorable loan terms.
• International Financial Cooperation: The Ministry represents Georgia in international financial institutions such as the International Monetary Fund (IMF), the World Bank, and the European Bank for Reconstruction and Development (EBRD). It engages in negotiations for financial assistance, technical support, and policy advice, fostering cooperation with international partners to support Georgia's economic development.
• Financial Regulation and Supervision: While the National Bank of Georgia primarily oversees the banking sector, the Ministry of Finance plays a role in broader financial regulation, particularly concerning non-bank financial institutions and insurance companies. It works to ensure the stability and soundness of the financial system, protecting consumers and promoting investor confidence.
• State Property Management: The Ministry is responsible for managing state-owned property effectively and transparently, ensuring its efficient utilization and contribution to the national economy. This includes oversight of state-owned enterprises and the implementation of privatization programs.

The Ministry of Finance is structured into various departments and agencies, each specializing in specific areas of financial management. These include departments for budget policy, tax policy, treasury, debt management, and international relations. The Revenue Service operates as a separate agency under the Ministry's supervision.

Transparency and accountability are emphasized in the Ministry's operations. The government publishes budget documents and financial reports online, promoting public access to information and citizen engagement in the budget process. The Ministry actively engages with civil society organizations and the media to foster dialogue and ensure that public finances are managed in a responsible and transparent manner.