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Investor Presentaiton

INVESTING IN INFRASTRUCTURE AND SPENDING LOW ON SOCIAL BUDGET EXPENDITURES Source: MOF, Geostat, forecasts as of 2nd draft of 2022 budget EXPENDITURE BREAKDOWN: CURRENT VS. CAPITAL Source: MOF, forecasts as of 2nd draft of 2022 budget 100% 25,000 50% 80.0% 81.7% 76.0% 78.1% 80.0% 72.5% 73.4% 74.2% 73.1% 72.2% 75.2% 76.0% 73.0% 20,000 32.3% 34.8% 40% 80% 29.4% 27.6% 15,000 29.4% 28.4% 28.6% 29.4% 28.2% 27.7% 32.4% 29.4% 30.9% 60% 30% 10,000 20% 40% 24.0% 27.5% 26.6% 20.0% 18.3% 21.9% 20.0% 25.8% 26.9% 27.8% 24.8% 24.0% 27.0% 5,000 10% 20% 0% 0% Expenditures (current + capital), GEL mn Expenditures (current + capital) as % of GDP GOVERNMENT SOCIAL EXPENDITURE AS % OF GDP Source: IMF, MOF Current expenditures Capital expenditures and net lending GOVERNMENT CAPITAL EXPENDITURE AS % OF GDP 25% 2019 2020 2021F 10% 2019 2020E ■2021F 19.4% 7.9% 20% 17.4% 17.6% 14.6% 14.8% 15.7% 16.5% 8% 6.5% 15% 6% 10.1% 4.4% 4.6% 4.9% 3.7% 10% 8.0% 3.4% 4% 2.9% 3.0% 5% 2% 0% 0% Latvia Poland Source: IMF, MOF 48
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