On Thursday, February 6, at the hotel “Sheraton Metechi Palace”, a presentation and public discussion of ongoing research “Analysis of the medium-term fiscal policy sustainability in Georgia” was held. The project is prepared by PMC Research Center and is implemented in the framework of the East-West Management Institute’s (EWMI) Policy, Advocacy, and Civil Society Development in Georgia (G-PAC) Program, funded by United States Agency for International Development (USAID).
The goal of the public discussion was to review the fiscal results of 2013 and to identify risks, which affect on fiscal sustainability of Georgia. In particular, the indicators of economic growth rate of 2013, the execution of consolidated budget of 2013, planned and projected parameters of 2014-15 budget, as well as current and potential challenges of the fiscal sustainability of Georgia were discussed during the presentation.
“In 2013, economic growth slowed down due to objective as well as subjective factors. In comparison with the planned budget of 2013, the expenses of the consolidate budget reduced more than the revenues of consolidated budget. This on its turn caused reduction of expected budget deficit. The shortage of 539 million GEL in consolidated budget revenues was due to decrease of VAT revenues. The reduction of budget expenses is due to the reduction of the expenses on infrastructure, social benefits and consumption of goods and services. In 2014, indicators of budget deficit and public debt deteriorated in nominal as well as in relative terms, but medium term parameters do not exceed margins of the fiscal sustainability indicators” – announced Mr. Besik Namchavadze, who is the economist at PMC Research Center.
The representatives of relevant Governmental sectors, NGOs, International Organizations , media, diplomatic Corps and academics attended the discussion.