Georgia 1995 Constitution (reviewed 2018)

Chapter Seven. Public Finances and Control

Article 66. State Budget

1. The Parliament of Georgia shall annually adopt the Law on the State Budget by a majority of the total number of its members.
2. Only the Government of Georgia shall have the right to present a draft State Budget to Parliament after the Basic Data and Directions have been examined with the committees of Parliament. The Government shall submit to Parliament a draft State Budget for the following year no later than 3 months before the end of a budget year. Together with a draft State Budget, the Government shall submit a progress report on the execution of the State Budget for the current year. The Government shall submit a report on the execution of the previous year’s State Budget to Parliament for approval no later than 5 months after the end of the budget year.
3. Amending a draft law on the State Budget shall be inadmissible without the consent of the Government. The Government may request that Parliament meets additional state expenses if it indicates the sources used to cover those expenses.
4. Parliament may adopt a law on increasing the expenditures or on reducing the revenues of a State Budget, or on introducing new financial obligations for the State for the current budget year, only with the consent of the Government. Laws related to the following budget year may be adopted with the consent of the Government or within the scope of the document on Basic Data and Directions of the country submitted by the Government to Parliament.
5. If Parliament does not adopt a State Budget by the beginning of a new budget year, expenses shall be covered in accordance with the procedures established by law, based on the State Budget of the previous year.
6. A reduction of the funds allocated for Parliament in the State Budget, as compared to the amount budgeted for the previous year, shall be possible only with the prior consent of Parliament. Parliament shall decide independently how to distribute the funds allocated for Parliament in the State Budget.
7. The Law on the State Budget shall be signed and promulgated by the President of Georgia in accordance with Article 46 of the Constitution. The remarks of the President on the Law on the State Budget may be accepted by Parliament only with the consent of the Government.
8. The procedures for drafting and adopting a State Budget shall be determined by law.

Article 67. Taxes and fees, economic policy

1. The payment of taxes and fees shall be mandatory in the amount and in accordance with the procedures established by law. Only the law shall determine the structure and the procedures for introducing taxes and fees, as well as their rates and the scope of those rates. Tax exemptions shall only be permitted by law. Tax controls shall be exercised only by the tax authorities defined by law.
2. The fundamental principles of economic policy for ensuring long-term and stable economic growth shall be defined by the organic law. In cases of special necessity, the breaching of and deviation from the limits set by macroeconomic parameters, as well as measures to be taken to return to those parameters, shall be determined by the organic law.

Article 68. National Bank

1. The National Bank of Georgia shall conduct monetary policy to ensure price stability and maintain the stable operation of the financial sector. The National Bank shall be the bank of banks, the banker and the fiscal agent of the Government.
2. The Board of the National Bank is the supreme body of the National Bank of Georgia. Members of the Board of the National Bank shall be elected by a majority of the total number of the Members of Parliament for a term of 7 years upon nomination by the President of Georgia. The President of Georgia shall appoint the President of the National Bank from among the members of the Board of the National Bank and dismiss him/her upon nomination by the Board of the National Bank.
3. The National Bank shall be independent in its activity. Only the administrative and capital expenditure of the National Bank shall be subject to supervision and control provided for by Article 69 of the Constitution. The National Bank shall be accountable to Parliament and shall annually submit an activity report to it.
4. Only the National Bank shall have the right to money emission. The name and unit of currency shall be determined by the organic law.
5. The competences, procedure for the activity and guarantees for the independence of the National Bank, shall be determined by the organic law.

Article 69. State Audit Office

1. The use and expenditure of budgetary funds and other public resources shall be supervised by the State Audit Office, with the purpose of facilitating the efficiency and accountability of public governance. It shall also be entitled to scrutinise the activities of other state bodies of fiscal and economic control and to submit proposals on improving tax legislation to Parliament.
2. The State Audit Office is led by the General Auditor, who shall be elected by a majority of the total number of the Members of Parliament for a term of 5 years upon nomination by the Chairperson of Parliament.
3. The State Audit Office shall be independent in its activity.
4. The State Audit Office shall be accountable to Parliament. Twice a year, together with the submission of preliminary and full reports on the execution of the State Budget, the State Audit Office shall submit to Parliament its conclusions on the Government report. Once a year, it shall submit to Parliament its own activity report.
5. The State Audit Office shall ensure the control of public funds by Parliament.
6. The competences, structure, procedure for the activity and guarantees for the independence of the State Audit Office shall be determined by the organic law.