Projected revenues are set at GEL 971.8 million whilst planned expenditures amount to GEL 1,002.0 million in Adjara’s 2026 budget. Both indicators have increased as compared with the previous year – by GEL 106.5 million and GEL 93.5 million, respectively. The growth in revenues is driven by a GEL 131.7 million increase in the “Revenues” category whereas expenditures rose due to a GEL 73.6 million increase in the “Expenses” category.
Figure 1: Revenues and Expenditures of the Adjara Autonomous Republic’s 2026 Budget, Change as Compared to 2025 (GEL)
Source: 2026 Budget of the Autonomous Republic of Adjara; author’s calculations
Revenues are projected to increase by 12.3% whilst expenditures are expected to rise by 10.3% according to Figure 1. One of the key parameters of the budget is the change in the balance. The use of GEL 30.2 million from the budget balance is planned in 2026. No free balance is expected to remain in the budget account at the end of the year under the aforementioned projection as projected expenditures exceed the projected revenues by exactly GEL 30.2 million.
Projected revenues from income are set at GEL 816,795,700 for 2026. As compared to 2025, the tax component is increasing whilst other income is declining. Specifically, tax revenues are expected to rise by GEL 140,000,000, or 21.2%, whereas other income is projected to decrease by GEL 8,304,300, or 33.1%. Taxes remain the main source of income, particularly personal income tax, which is projected at GEL 800,000,000 – GEL 140,000,000, or 21.2% higher than in 2025. Other income is projected at GEL 16,795,700, mostly from interest (GEL 10,000,000), although this is GEL 7,946,200 less than last year. Revenue from dividends is minimal at only GEL 200,000. Only three of the 34 enterprises in which the Autonomous Republic of Adjara holds shares consistently paid dividends between 2021 and 2025 according to the State Audit Office. One enterprise reported undistributed profits of GEL 6,425,000 during the same period. Considering the growth trend in revenues and dividends, and taking into account actual income of GEL 8,099,300 as of November 2025, projections for this component could increase if expenditures are optimised. The aforementioned audit report also notes that amongst the three enterprises with Adjara’s shareholding bankruptcy proceedings are ongoing in one, two are under liquidation and three have been transferred under management rights. The report also explains that in 2024, no revenues from dividends were planned in the republican budget and thus no income from this component was received that year.
Funding for expenditures and asset growth items is increasing in the 2026 budget – by 10.2% and 12.3%, respectively. However, the funding for the liability reduction item is decreasing by 2.9%.
Figure 2: Expenditures of the Adjara Autonomous Republic’s 2026 Budget, Change as Compared to 2025 (GEL)
Source: 2026 Budget of the Autonomous Republic of Adjara; author’s calculations
The planned changes in the 2026 budget expenditures, as compared to the 2025 parameters, are as follows:
Figure 3: Change in Adjara Autonomous Republic’s 2026 Expenditures as Compared to the 2025 Plan, %
Source: 2026 Budget of the Autonomous Republic of Adjara; author’s calculations
Planned spending on wages and goods and services is increasing significantly when observing at the expenditure components – by 12.3% and 7.9%, respectively. The number of employees has also grown alongside the rise in salaries. The 2026 budget includes 48 more staff positions as compared to last year. As it turns out, this increase is mainly due to the Ministry of Culture of Adjara where the number of budget-funded employees rises from 1,893 last year to 1,930 this year – constituting an increase of 37 people. It should be noted that the total of these two items – “wages” and “goods and services” – represents administrative expenses. “Goods and services” in itself include salaries for contract (non-staff) employees, travel, office, food, medical, soft inventory and transport and equipment maintenance costs. Overall, administrative expenditures were planned at GEL 168,736,500 in 2025 whilst the 2026 plan is GEL 185,296,700, reflecting a 9.8% increase. Regarding the share of wages in total expenditures, it has increased only slightly – from 10.3% last year to 10.5% this year.
The largest increase in assigned funds went to the Ministry of Finance and Economy amongst the ministries of Autonomous Republic of Adjara. However, the Ministry of Culture’s appropriations are increasing the most in percentage terms. A significant increase is also seen for the Adjara Government.
Table 1: Appropriations by Spending Institutions – Comparison of the 2026 Budget Parameters with the 2025 Budget Parameters
Source: 2026 Budget of the Autonomous Republic of Adjara; author’s calculations
Allocations for the Ministry of Finance and Economy of Adjara are set to increase by GEL 32,218,200 as compared to 2025. One of the Ministry’s sub-programmes is the gasification of Adjara’s highland region for which the 2025 budget allocated GEL 3,268,000. However, only 14.9% of the annual plan had been executed after nine months. This issue is highlighted in the State Audit Office’s report on the nine-month execution of Adjara’s 2025 budget. The project was supposed to the completed already. The Ministry repeatedly cites the rehabilitation of the Khulo-Zarzmi highway, which itself should have been finished years ago but has not yet been handed over, as the reason for delays vis-à-vis the work schedule. The highway rehabilitation is being carried out by the Georgian Roads Department. GEL 1,850,000 is planned to be spent on the gasification of Adjara’s highland region.
Projected expenditures for debt servicing and repayment of received loans are set at GEL 22,316,300 under the 2026 budget – GEL 2,924,400 (11.6%) lower than in 2025. Interest expenses on foreign loans are expected to decrease by GEL 2,346,800 (44.8%) in 2026 as compared to last year whereas repayments of foreign loans will decline by GEL 577,600 (3.9%). The significant reduction in interest expenses on foreign loans is primarily due to lower servicing costs for the loan received from Germany’s Credit Institute for Reconstruction (KfW).
Of the general-purpose expenditures, GEL 96,667,700 is allocated to fund enterprises in which the Autonomous Republic of Adjara holds shares. The largest portion – GEL 64,908,200 – is designated for the LLC Adjara Project Management Company.
Table 2: Funding for Enterprises with Shareholding by the Autonomous Republic of Adjara According to the 2026 Budget of Adjara
Source: 2026 Budget of the Autonomous Republic of Adjara; author’s calculations
The LLC Adjara Project Management Company has procured several infrastructure projects that have raised questions as noted in reports by State Audit Office. For example, there is the construction of the Batumi swimming pool and ice arena which has been the subject of multiple investigations published by FactCheck (see article). Notably, the LLC Adjara Management Company is implementing infrastructure projects related to the construction of a new landfill in Adjara that meets modern standards. The works have been delayed and as a result the old landfill site remains in operation (see article). Loans totalling EUR 59.0 million were allocated for the region’s village water supply and sanitation programme, supported by Germany’s Credit Institute for Reconstruction Bank (KfW) and co-financed by the European Union and for Phase II of the Adjara Solid Waste Management from the European Bank for Reconstruction and Development (EBRD), according to the nine-month execution report of Adjara’s 2025 budget. An annual obligation fee is paid on the undisbursed portion of the loans, amounting to 0.5% of the unused funds under the terms of the credit agreements. The amount paid for the unused portion of the loans in the form of this obligation fee totalled EUR 74,000 as of 1 October 2025.
