Georgia will face budget deficit

Economist from the Movement for Fair Georgia Shota Gvenetadze has stated that the 2009 state budget faces a serious deficit. Analyzing budgetary revenues from January-February 2009, he says that the country has gone down to its 2006 level. If in 2007 and 2008 revenues were increasing, now they are decreasing.

Gvenetadze assumes that if the current trend continues the country will face around a 20% deficit by the end of the year. Since the country’s budgetary revenues were projected to be around GEL 5 billion, the country could thus face a 1 billion deficit.

Gvenetadze recommends that two urgent measures are taken, the first being a reduction of the projected budgetary income and the other the making of a request for urgent aid from international financial organizations.