Georgia: Fiscal Resilience and Social Protection Support Program (Subprogram 2)

Sovereign Project | 54271-002

The program aims to strengthen Georgia's fiscal resilience to external shocks, addressing institutional fragilities in fiscal management and social protection. Subprogram 2 deepens and completes reforms initiated in subprogram 1, supporting Georgia's economic recovery from the coronavirus disease (COVID-19) crisis, amid a context of heightened regional and global economic uncertainty. Prior actions included in subprogram 2 (i) improve institutional capacity for management of fiscal risks stemming from climate change and natural disasters and state-owned enterprises (SOEs); (ii) deepen domestic debt markets for government securities and capital market development to mitigate exposure to currency and refinancing risks; and (iii) strengthen adequacy and fiscal sustainability of social protection programs to protect the livelihoods of Georgia's aging population.

Project Details

  • Project Officer
    de Almeida Vieira de Sa, Rogerio
    Central and West Asia Department
    Request for information
  • Country/Economy
    Georgia
  • Sector
    • Public sector management

Related Projects

Project Name Fiscal Resilience and Social Protection Support Program (Subprogram 2)
Project Number 54271-002
Country / Economy Georgia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4246-GEO: Fiscal Resilience and Social Protection Support Program (Subprogram 2)
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Finance / Finance sector development - Money and capital markets

Public sector management / Public expenditure and fiscal management - Reforms of state owned enterprises
Gender Equity and Mainstreaming Some gender elements
Description The program aims to strengthen Georgia's fiscal resilience to external shocks, addressing institutional fragilities in fiscal management and social protection. Subprogram 2 deepens and completes reforms initiated in subprogram 1, supporting Georgia's economic recovery from the coronavirus disease (COVID-19) crisis, amid a context of heightened regional and global economic uncertainty. Prior actions included in subprogram 2 (i) improve institutional capacity for management of fiscal risks stemming from climate change and natural disasters and state-owned enterprises (SOEs); (ii) deepen domestic debt markets for government securities and capital market development to mitigate exposure to currency and refinancing risks; and (iii) strengthen adequacy and fiscal sustainability of social protection programs to protect the livelihoods of Georgia's aging population.
Project Rationale and Linkage to Country/Regional Strategy Georgia's sound policy response to the COVID-19 crisis generated a robust economic recovery in 2021. Growth in gross domestic product (GDP) rebounded sharply from -6.8% in 2020 to 10.4% in 2021. Similarly, an increase in the share of people living below the national poverty rate from 19.5% in 2019 to 21.3% in 2020, was quickly reversed to a historical low of 17.5% in 2021. Initial concerns about potential spillovers from Russian invasion of Ukraine have not materialized and did not alter the economic outlook for 2022. Instead, economic performance is expected to remain robust on account of an increased influx of migrants from the Russian Federation and strong growth in remittances and exports. Improved external inflows are expected to narrow the current account deficit to 8.2% of GDP in 2022, compared with 9.8% in 2021. Economic output is estimated to grow by 6% in 2022, signaling economic resilience, and prudent macroeconomic management.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer de Almeida Vieira de Sa, Rogerio
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
Timetable
Concept Clearance 12 Jan 2024
Fact Finding 21 May 2022 to 28 May 2022
MRM 26 Aug 2022
Approval 10 Nov 2022
Last Review Mission -
Last PDS Update 10 Nov 2022

Loan 4246-GEO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Nov 2022 21 Nov 2022 19 Dec 2022 31 Dec 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 100.00 25 Jan 2023 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 Jan 2023 106.27 0.00 100%

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