Georgian budget issues

Minister of Finance Kakha Baindurashvili has stated that the 2010 budget deficit will be 7% but the economy will grow by 2%. However if economic growth is not at the desired level the deficit will be even bigger. To defray the deficit extra money will have to be earned from privatisation, foreign loans and treasury liabilities. While the budget was being drawn up President Saakashvili suggested that there should be no more than a 3% deficit but the Minister explained that this should be achieved by 2013.

Opposition economic analyst Professor Nodar Khaduri reveals how the budget figures are manipulated. In 2009 a 10% budget deficit was projected, but it became evident that because of problems accruing revenues the actual deficit would be much higher. Consequently the budget was twice amended and its projections decreased by GEL 500 million to produce the expected 10% deficit. Khaduri thinks that this could be done for the current budget as well. However Minister Baindurashvili gives a few encouraging figures, for example GEL 20 million more was accrued in January 2010, more than in January 2009.