The National Bank of Georgia’s Vice Governor Nino Jeladze addressed the Parliamentary Committee on Finance and Budget on the initial draft of the 2026 State Budget, stating that the central bank has no comments on the submitted document and assessing that the 2026 budget will not exert inflationary pressure. Her remarks highlighted the importance of ongoing fiscal consolidation, with the consolidated budget deficit for 2026 remaining close to a sustainable level of 3 percent in line with the fiscal rule. Under the National Bank of Georgia’s baseline forecast, 2025 economic activity continues to normalise toward its long-term growth rate of 5 percent, largely driven by increased productivity, and the economy’s positive cyclical position is expected to return to equilibrium in 2026, making a neutral budget deficit optimal. The central bank’s opinion on the draft budget law is based on an analytical assessment of the consolidated budget as the measure of fiscal policy’s impact on aggregate demand and inflation.
National Bank of Georgia 2025-10-13
National Bank of Georgia tells parliament it has no objections to the 2026 draft budget and expects no inflationary pressure
The National Bank of Georgia's Vice Governor Nino Jeladze informed the Parliamentary Committee on Finance and Budget that the central bank has no comments on the 2026 State Budget draft, which is not expected to exert inflationary pressure. The budget deficit is projected to remain near a sustainable 3 percent, aligning with fiscal rules. Economic activity is anticipated to normalize to a 5 percent growth rate by 2025, with the economy reaching equilibrium in 2026.