Tazo Datunashvili: “Emigrants send home USD 3.3 billion annually – about a third of the national budget – this is how the country sustains itself.”

Verdict: FactCheck concludes that Tazo Datunashvili’s statement is MOSTLY TRUE.

Remittances from abroad reached USD 3.4 billion in 2024. The volume of remittances has been increasing year by year, with few exceptions. Furthermore, the ratio of remittances to the GDP is at a substantial 10% (whilst they do not directly contribute to GDP calculation, they have a significant impact on both consumption and investment).

Although the exact number of emigrants is unknown, their number is steadily increasing, given that Georgia experiences a negative migration balance each year. Moreover, there are no precise statistics regarding the number of households receiving remittances on a regular basis. However, considering both the growing emigrant population and the volume of transfers, it is evident that a able number of families depend on them. Remittances serve as the main source of income for some; for others, they are the only source.

Budget revenues constituted USD 9.4 billion in 2024 and USD 9.8 billion in 2025 (based on the average monthly exchange rate in the first quarter of the year). These figures suggest that state revenues are approximately three times higher than the volume of remittances. Although the state budget is not directly financed through remittances – as also noted by Tazo Datunashvili – they still have an indirect effect. When consumers purchase goods and services, they pay value-added tax (VAT) and, in some cases, excise duties.

Tazo Datunashvili accurately cited the data. Furthermore, it is indeed accurate that remittances represent a significant factor in both the economy and the social landscape. However, they are not the sole foundation of the economy and describing them as essential for the country’s “survival” is an overstatement. Considering the above, FactCheck concludes that Tazo Datunashvili’s statement is MOSTLY TRUE.

Analysis

During the TV Pirveli programme, Rusudan Dumbadzis Dghis Ambebi (Rusudan Dumbadze’s Daily News), one of the leaders of the Lelo party, Tazo Datunashvili, stated (from 51:26): “This is a country where USD 3.3 billion is brought in annually thanks to our emigrants. The national budget amounts to USD 10 billion and remittances constitute nearly a third of that – not a third of the budget, but its absolute amount relative to the budget. This is the money sent by our compatriots abroad and this is how the country sustains itself.”

Up to USD 3.4 billion was transferred to Georgia from abroad in 2024. Whilst this marked a 19% decrease as compared to 2023, if transfers from Russia are excluded, an 8% increase was recorded (remittances from Russia increased fivefold in 2022 – from USD 400 million to USD 2 billion – and remained at USD 1.5 billion in 2023; therefore, the decline in 2024 can be attributed to the base effect).

Given their relatively small per transaction, remittances primarily affect consumption – one of the components of the GDP.

Although the exact number of emigrants is unknown, the migration balance has consistently remained negative. Notably, 118,000 more Georgian citizens left the country than returned in 2022-2023 alone, suggesting a growing trend in migration. Furthermore, the amount of money transferred from abroad has been growing annually.

There are no precise statistics on how many households receive remittances. However, given the rise in emigration, it can be assumed that the number is substantial. Remittances serve as the main source of income for some; for others, they are the only source.

Graph 1: Remittances and Their Ratio to the GDP

Source: National Bank of Georgia

Remittances have declined only once during the governance of the Georgian Dream – in 2015 – primarily due to the instability in the key sending countries, particularly Russia and Greece. Money transfers from Russia fell from USD 709 million to USD 432 million and from Greece from USD 205 million to USD 118 million that year. Whilst declines were also marked in 2023 and 2024, these were due to the base effect, following an irregularly sharp increase in remittances from Russia in 2022.

The United States holds the top position amongst remittance-sending countries with USD 573 million, followed by Italy with USD 567 million and Russia with USD 541 million, as of 2024. Despite Russia ranking first over the years, its share has been steadily declining, except for the surge in 2022-2023. Russia accounted for 54% of total transfers in 2013, dropping to 18% by 2021 and further to 16% in 2024. Notably, remittances from the US have recorded the most significant growth in recent years, amongst the major donor countries. Transfers from EU countries are also growing. Three of the top five remittance sources – Italy, Germany and Greece – are EU member states.

Excluding 2022, the highest percentage growth in total remittances was observed in 2021, when the rise reached 25%, likely driven by post-pandemic recovery and rising inflation.

Tazo Datunashvili also drew a comparison between remittances and the state budget, stating that total remittances amount to about one-third of Georgia’s USD 10 billion budget. He clarified that this was a comparative observation, not a claim that the budget is financed by remittances.

State budget revenues constituted GEL 25.6 billion in 2024 which is equivalent to approximately USD 9.4 billion based on the average exchange rate for the year (2.72). Revenues for 2025 are projected at GEL 27.6 billion, or around USD 9.8 billion, calculated using the average exchange rate for the first three months of the year (2.81). This suggests that total budget revenues are roughly three times higher than the volume of remittances.

Whilst remittances do not directly contribute to the state budget, they indeed have an indirect effect. When consumers purchase goods and services, they pay value-added tax (VAT) and, in some cases (alcoholic beverages excluding wine, tobacco products or motor fuel), they also pay excise duties. However, it is not possible to determine the precise portion of VAT revenue sourced from remittances.

Tazo Datunashvili accurately cited the data: remittances exceed USD 3.3 billion, whilst the state budget is under USD 10 billion in USD terms. It is also true that remittances represent a significant factor in both the economy and the social landscape. However, they are not the sole foundation of the economy and describing them as essential for the country’s “survival” is an overstatement. Considering the above, FactCheck concludes that Tazo Datunashvili’s statement is MOSTLY TRUE.