Georgia Revises 2025 Budget as Growth Raises Tax Revenue

The Georgian government has presented a revised version of the 2025 state budget to Parliament, along with the draft budget for 2026, incorporating adjustments to the projected tax revenues for the upcoming year.

Under the updated plan, total tax income is expected to reach GEL 21.94 billion, an increase of GEL 55 million compared to the originally approved forecast, The Caspian Post reports citing foreign media.

Most of the upward revision comes from higher expectations for income tax, now projected at GEL 7.55 billion, GEL 180 million more than initially planned. In contrast, the forecast for corporate profit tax has been reduced by GEL 190 million, with the government noting that the banking sector’s 2024 profits are turning out lower than previously anticipated.

Other major taxes remain largely unchanged. The forecasts for VAT (GEL 8.14 billion) and excise tax (GEL 2.65 billion) stay in line with earlier projections. Import tax has been slightly adjusted downward by GEL 5 million, while the category of other taxes increases by GEL 70 million, bringing it to GEL 580 million.

Explanatory note attached to the document states that the revised figures reflect a stronger-than-expected economic performance. While the original 2025 budget had been based on 6% GDP growth, the updated version now projects growth of 7.2%.