Local Officials of Ozurgeti District Understood “Tightening of Belts” Incorrectly

Shorena Ghlonti, Guria

Policy of “tightening belts” aims to reduce expenditure of state infrastructure and optimizations of the funds. The funds released from similar optimization had to be spent on various activities which will stimulate the economics. Because of financial crisis, the president of Georgia and prime-minister once more announced the policy of: tightening of belts” late in January of 2009. “We, state institutions – president’s administration, executive government, city halls, district administrations, shall tighten belts and reduce administrative expenses and spend the released money on saving the working places,” said Mikheil Saakashvili.

Ozurgeti district municipality understood the policy of “tightening of belts” like this: in the 2010 budget they reduced the fund for salaries till 1 103, 700 GEL instead previous 1 238, 500 GEL.

Ozurgeti Municipality Board allocated 667 230 GEL to district administration for salaries. However, additional 58 180 GEL is envisaged for the salaries of administration employees in the main financial document of the year.

“We should envisage wages for non-on-the-staff employees shall also be envisaged in the budget for the salaries; in 2009 the total fund for their salaries amounted to 138, 400 GEL.

Consequently, district administration increased the budget for salaries instead reduction. In accordance to the 2010 budget, the expenses amount to 1, 242, 100 GEL,” said representatives of the Union for Democratic Development of Georgia.

Non-on-the-staff employees are a novelty for the district administration – during previous years they did not use similar labor. Experts wonder why the district budget envisages such a large amount of money for non-on-the-staff employees.

“What criteria do they use to select non-on-the-staff employees and what are their functions at the district administration? What do we face in this particular case – municipality board and district administration is not competent enough and hires new staff to do the job. Or all these are connected with upcoming elections,” said expert Levan Chkhaidze.

What are the real expenses of the district administration? This is very interesting question and replies on this question are scattered in various resolutions adopted by the Ozurgeti municipality board. Resolution of municipality board estimates the amount of the salary of public officials as well as municipality structures.

District budget clearly opposes the document of principal data and directions of the country – strategy of 2010-2013. The latter clearly underlines its main priority – “public service shall be reduced, and shall become efficient, transparent and flexible.”

According to the resolution of Ozurgeti municipality board, total amount of salary budget in a year is 144 840 GEL; however, for 2010 it has amounted to 219 000 GEL. The difference between these figures is 74 160 GEL; in fact it is half of total sum. District administration shall get 667 120 GEL based on the resolution of the municipality board; however, budget envisages 725 300 GEL for administrative expenses that is 58 180 GEL more than requested.

State budget of Georgia regulates the distribution of salaries in state institutions. It states that employees of the institutions and organizations funded from state budget shall get bonuses, salaries and allowances in accordance to the law of Georgia. Besides that, financial institutions are entitled to increase the salaries by not more than 1/12 of the already estimated amount of salaries.

Thus, when the state budget was reduced at 300 million GEL, the number of employees in local self-governmental institutions and their funding has seriously increased in 2010; as for in the offices of regional governors, the number of staff has doubled.