The Portion of the National Budget Spent on Freelance Employees Increased

The Portion of the National Budget Spent on Freelance Employees Increased

Budget organizations spent GEL 49.3 million on the freelancers in Q1, 2019, which is GEL4.9 million increase compared to the same period of the previous year and GEL 12.3 million increase compared to same period of 2016.

According to the data of State Audit office of Georgia, in Q1, 2019, the most amount of compensations to freelancers were paid by the following organizations:

  • Parliament and its organizations – 2.1 million GEL

  • Ministry of Economy and Sustainable Development – 1.1 million GEL

  • Ministry of Justice – 1.7 million GEL

  • Ministry of Defense – 6 million GEL

  • Ministry of Internal Affairs – 4.7 million GEL

  • Ministry of Environment and Natural Resources Protection – 2.9 million GEL

  • Ministry of Education, Science, Culture and Sport – 13.3 million GEL

  • Ministry of Labor, Health and Social Affairs- 8.4 million GEL

The amount paid to freelancers by the budget organizations during the last 5 years has almost doubled and reached GEL226.4 million.

Some organizations, for example, the Ministry of Health, spends almost the same amount on freelancers and staff members. In particular, GEL40 million was paid to the freelancers, while the total compensation cost was GEL31 million.

In some Budget Organizations, the cost on freelancers has doubled in recent years. For example, if the payments to freelancers by the Parliament and its organizations was GEL4.4 million in 2014, in 2018 it has increased to GEL9 million.

The cost of freelance employees increased in the Ministry of Economy: in 2014 – GEL1.9 million; 2015 – GEL3.8 million; 2016 – GEL 2.9 million; 2017 – GEL 3.7 million; 2018 – GEL4.5 million.

In 2018, following organizations spent the following amounts on freelance employees:

  • Parliament of Georgia and its organizations – 9 million GEL;

  • Administration of Georgian Government – 2.2 million GEL;

  • CEC – GEL 2.5 million

  • General Courts – GEL 3.5 million 

  • Ministry of Justice – GEL 6.1 million

  • Ministry of Defense – GEL 12.9 million

  • Geostat – GEL 4.2 million

  • State Security Service – GEL 4.6 million

  • Ministry of Finance – GEL 3 million 

While Budget organizations are required by law to provide transparent information about employees and this data is more or less proactively published, information about the number of freelancers remains unpublished. A freelancer is a person who is entitled for a certain period of time by appointment or labor agreement to perform unparalleled tasks at work.

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