Challenges of the state budget
By Messenger Staff
Monday, September 2State budget revenues have been decreasing for the last three months. If the situation does not change in the near future, the government will be forced to either take a loan or increase taxes, which would not be the preferable option.
According to the data provide by the ministry, the budget received only GEL 457 million in revenue in June. The ministry remains optimistic and states that the state budget will not have any problems in covering all its liabilities.
To increase taxes still remains one of the ways to solve budgetary problems. The Georgian government has already taken some steps and increased excise taxes on tobacco products, which should bring in an additional 70 million to the budget. However, if the government decides to increase taxes for other businesses as well, it will cause a crisis. Most likely the government will have to approach commercial banks for a loan, but this method will not fix the problem either.