Georgia Ministry Of Finance
- Founded
- 2009-01-01 in Tbilisi, Georgia
- Headquarters
- N16, Vakhtang Gorgasali Street, Tbilisi, Georgia 0114
The Ministry of Finance of Georgia is the central executive authority responsible for the country's financial and fiscal policies. Headquartered in Tbilisi, it oversees budgeting, taxation, public debt management, and treasury operations, playing a pivotal role in Georgia's economic stability. The Ministry also regulates the gambling and betting industry through its Revenue Service, which handles licensing and tax collection for iGaming operators. Its digital governance initiatives, such as the e-PFMS and e-Budget systems, have modernized public financial management and earned international recognition. As of 2023, the Ministry's annual budget was approximately GEL 106 million. The current Minister, Lasha Khutsishvili, has served since 1 April 2021. The Ministry operates through subordinate bodies including the Revenue Service, State Treasury, and Investigation Service, and engages with institutions like the World Bank and IMF to coordinate fiscal policy.
Detailed Review
History and Establishment
The Ministry of Finance of Georgia traces its roots to the post-independence government formed in 1990, with the first Minister of Finance appointed in November 1990. The modern structure was formally established on 1 December 2009 by law, consolidating financial oversight under one body. This reorganization aimed to improve efficiency and transparency in public financial management.
Role and Business Model
The Ministry is a sovereign governmental body, not a profit-driven entity. Its core duties include formulating and implementing state policy on budgeting, taxation, public debt management, and treasury operations. It also coordinates foreign creditor attraction, manages state budget funds, and maintains financial control over public spending. The Ministry's regulatory authority extends to the gambling and betting sector, where it sets tax rates and issues licenses through the Revenue Service.
Key Platforms and Services
The Ministry has developed several digital platforms to enhance public financial management: - e-PFMS (electronic Public Financial Management System): A comprehensive platform for budgeting, treasury, and accounting. - e-State Treasury – Electronic Service System: Manages treasury operations and payment tracking. - e-Budget: Supports electronic budget planning, execution, and monitoring. - Revenue Service: Handles tax collection, customs administration, and gambling licensing. - State Treasury: Oversees the single treasury account and public debt. - Investigation Service: Investigates financial crimes, tax evasion, and money laundering; includes a cybersecurity and forensic unit. - Customs Department: Manages import/export controls and trade facilitation.
Market Position and International Engagement
As a government regulator, the Ministry holds a unique position in Georgia's financial ecosystem. It does not compete with private sector entities but sets the rules for them. Its international engagements include issuing sovereign bonds (e.g., a USD 500 million Eurobond in 2024 on the London Stock Exchange) and maintaining relations with the Asian Development Bank, World Bank, and IMF. The Ministry has also been active in GovTech reforms, promoting fiscal transparency with support from international partners.
Recent Developments
Key recent news includes the successful Eurobond issuance and ongoing digital transformation efforts. The Ministry continues to implement reforms to enhance efficiency and transparency in public finance management, contributing to Georgia's economic development.
Key Products
e-PFMS (Public Financial Management System)
Core digital platform for managing public finances, budgeting, and expenditure control.
e-State Treasury Electronic Service System
Online portal for treasury operations, payment processing, and fund management.
e-Budget
Electronic system for budget preparation, execution, and reporting.
Tax Administration System
Backend infrastructure for tax collection and compliance, operated under the Revenue Service.
Fiscal Risk Management Framework
Includes the Fiscal Risks Statement and aggregate SOE reports published regularly by the FRMD.
State Budget Execution System
Manages the national budget, including revenue collection and expenditure tracking.
e-Treasury System
Electronic treasury service for government payments and accounting.
Public Debt Management Platform
Used for issuance and management of government securities, both domestic and international.
e-PFMS (electronic Public Financial Management System)
A digital platform for comprehensive public financial management, including budgeting, treasury, and accounting.
e-State Treasury – Electronic Service System
An online system for treasury operations, payment management, and fund tracking.
Revenue Service
The agency responsible for tax collection, customs administration, and licensing of gambling operations.
State Treasury
Manages the single treasury account, state budget execution, and public debt.
Investigation Service
Investigates financial crimes, tax evasion, and money laundering; includes forensic and cybersecurity units.
Customs Department
Manages import/export controls, customs duties, and trade facilitation.
Key Persons
Lasha KhutsishviliMinister of Finance of Georgia
Daniele Correa CardosoSecretary of Prizes and Betting
Notable past members
- Cassiel Ato Forson — Deputy Minister for Finance