Methodology

Information presented is taken from budgetary documents available at the Ministry of Finance website, as well as are provided directly from the Ministry. The web-site and its contents uses methodology and budgetary regulations approved by the current legislation of Georgia. 

 

The Universe of Public Expenditures

 

In making decisions on state expenditures, politicians speak in terms of hundreds of millions of GEL. Very few of us are so fortunate as to have personal experience with such sums. It is difficult for us to imagine millions; we can't even think in terms of billions. Thus we lose sight of what things cost us.

The Universe of Public Expenditures of Georgia is a graphical representation of all public expenditures financed by taxes and contributions. It enables one to understand the relationships among the individual items of public administration. It is a useful aid in illuminating the basic financial flows between citizen and state as well as among individual state institutions. The relative level of expenditure in each field is reflected in the sizes of the circles, making it possible to easily compare the dimensions of the specific areas in which politicians have decided to use our money. Percentages indicate changes in the current budget relative to the previous year’s budget.

The map comprises four circles, one for the Public Administration that represents the consolidated budget - sum of the State Budget of Georgia, budgets of the autonomous republics and self-governing entities, second for the State Budget – that redistributes 90% of the consolidated budget, Receipts – total inflows of the public sector that consist of tax and nontax revenues, inflows from privatization, borrowing and other inflows, Public Debt – showing the total State debt of Georgia, as well as a debt increase in a particular year. 

 

Buy your own State

 

This virtual shop for public services helps to illustrate everything the state does today and how much money it costs us. By entering this imaginary shop you will be able for the first and perhaps last time in your life to choose for yourself which services you really want from "your" state and those for which you would not pay even a single Tetri. The price of the state will then be calculated based on your choices and you will discover how much cheaper or more expensive would your state be. 

You may select from services financed from the state budget such as education, social and healthcare, defense, ministries of interior affairs and corrections and legal assistance; covering all public administration services might make the task confusing and unmanageable.

When choosing you may select the volume of expenditures for the given public area by moving a slider in the range of 0% to 200% of current spending levels. That is 200% - means the State should double expenditures in the selected direction, 100% equals – the costs should remain the same, 50% - half of what the state pays now, 0% - the State should not pay for the selected service. 

After pressing BUY you will find out how much would “your” state cost, how much you have saved per capita and per working person per year. 

 

What do you Pay 

 

The calculator will help you count how much you pay for state provided services. People tend to think that they are taxpayers only when they are formally employed by paying income tax, or when having their own business. In reality, people pay taxes indirectly when for example buying excise taxed products (bear, alcohol, wine, cigarettes) we pay excise tax, when buying any type of product we are value added tax payers. When taking a bank loan or renting an apartment we contribute to the state budget as well. Therefore, the state budget comprises of taxes paid by us that the politicians spend according to the priorities set by them. 

 

The calculator “How much do you Pay” helps us determine the true state burden on us, citizens.  After entering information on your monthly gross salary, monthly expenditures in total, while breaking down as per monthly rent, your spending on fuels, how much you smoke and drink per week, the calculator will show you your monthly balance, that is how much is your monthly state “burden” how much in an 8-hour working day you work for yourself and how much for the state, how much do you pay in income, excise and VAT taxes to the State. 

 

 Bill for government services

 

A cash register receipt represents an easy tool how to distribute the information and explain to ordinary people, where his/her taxes end and in what amount he/she contributes for public services. The bill presents state provided services and their per capita cost. At the same time it provides with information on deficit spending per capita as well as growing public debt. Due to calculation method – per capita – it is clear, that the data only illustrate the costs of services, on the other hand, this method allows everyone to calculate, how much would the tax burden need to grow per capita, if, for example, the pensions should rise by 10%.

 

 
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