Budget plans very optimistic

The 2009 state budget stated that Georgia would make GEL 76 million from privatisation, but only GEL 10 million has been raised. This could have been predicted, as the budget parameters were very optimistic.

Analyst Mamuka Aresheidze thinks that certain prognoses and estimations made by state officials were too optimistic and did not take into account the serious economic crisis the country was in. Fellow analyst Davit Narmania also thinks that when planning the budget State officials foresee only optimistic developments and do not take into account the real situation in the country.

Narmania believes that the same approach is being taken to the 2010 budget. It is impossible for a 4% GDP contraction to all of a sudden transform into 2-3% growth, he says.