deficiencies related to reserve fund management

According to the Budget Code, "Resources from the President and the Government Reserve funds are intended to be allocated for unforeseen expenditures" (Article 28, Section 2). Aim of this regulation is to ensure smooth functioning of the government by financing expenditures, which, for objective reasons, could not be taken into account at the budget planning stage. However, due to general definition of reserve funds at the legislative level, current practice is to allocate resources for financing expenditures which have systematic nature and if properly planned, could have been included in relevant spending agencies' appropriations at the budget planning stage.

Purpose of the allocated resources

According to the Budget Code of Georgia, "Resources from the Reserve Funds of Prezident of Georgia and Government of Georgia are allocated for financing of such activities that were not included in the budget planning" (Article 28, paragraph 2).

In some cases, financing such activities / projects are systematic and in the case of appropriate planning it would be possible to consider them in the budget planning stage.

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The diagram presents the annual plan of the Government Reserve Fund defined by the Budget Law and the actual amount of resources spent from this Fund.


The Government Reserve Fund is created to finance the payments unforeseen by the budget.


Source: Ministry of Finance of Georgia

Last update: 25.01.2019

The diagram presents the distribution of the resources spent from the Government Reserve Fund, according to their purposes.

 Year 2018 - Data for 8 Months. 

Source: Ministry of Finance of Georgia

Last update: 23.10.2018