Economy
Posted: 3 years ago

Government to Cut Budget Costs by 600 million GEL

Today we have the following budget parameters: budget revenues will shrink by about 1.8 billion GEL, expenditures will be cut by 600 million GEL, including 300-million GEL current expenditures and 300-million GEL capital costs that cannot inflict much damage to the country.

Part of them are tourism projects that have lost relevance for the nearest years”, Prime Minister Giorgi Gakharia noted when delivering speech at the Parliament on May 27.

The revised budget bill will be submitted to the parliament the next week or in 10 days, he said and also updated parliament members on the business sector’s financial assistance programs.

"Today, 3 billion GEL is required to promote the business and finance social assistance programs, but total amount equals to 4.2 billion GEL. This was the starting point, when we started negotiations with international partners.

"I would like to stress that Georgia was the first country that has finished negotiations amid the pandemic and economic crisis and agreed a new program with International Monetary Fund (IMF). This is an important achievement, because this agreement will foster working process with other donors and this will be confirmed in about 2-3 weeks. The Government of Georgia has received a 500 million USD support from international donor organizations and we have been already using this sum. After we resolved the government’s requirements and liquidity problems, we started negotiations with donors together with our business and we have received consent from international organizations for our private sector, banking-finance sector and they have approved a 500 million USD assistance package”, Giorgi Gakharia said.