Some experts may want us to cut pensions or suspend social programs, but we will not allow this, – George Kakauridze, Deputy Finance Minister, said in response to statements from some experts claiming that costs were not substantially reduced in the adjusted state budget.
As Kakauridze told journalists before a governmental session, costs were reduced by 160 million, which is adequate to the current needs. “When the economic growth rate is reduced, this leads to a drop in tax revenue; therefore, we had to find alternatives to fill this gap. These are fourth-generation licenses, additional grants and other sources.
As for the experts’ opinions, some may want us to cut pensions or suspend social programs, but, of course, we will not allow this. Reduction of expenditures by about 160 million, which we’ve already done, is sufficient enough to allow the budget to meet foreign obligations and also allocate money for disaster relief efforts,” – said Kakauridze.
As for the question of whether the budget’s new fiscal parameters were approved by the International Monetary Fund (IMF), the Deputy Finance Minister explained that the budget was adjusted in accordance with IMF recommendations. “We have taken the IMF recommendations into account. The main recommendation was not only to reduce expenditures, but also to deal with the deficit,”- said the Deputy Minister of Finance.