Budgetary problems – already visible

The state budget for 2014 is 9.105 billion GEL, whereas taxation revenues will be 7.319 billion GEL. The deficit of 1.636 billion GEL is planned to be covered by loans. There is a world practice in the situation when there is a deficit in the budget. Most of the governments in such countries start “tightening belts” which means a decrease in expenditures and the implementation of cost-cutting measures..

The current budget however, has increased the financing of some state structures. Analysts highlight that the salaries in state institutions will increase by 25%. In most of the ministries, salaries are to be increased. Some analysts express their concern over such a tendency. However, officials try to calm the situation by providing different explanations and justifications to such steps. (The Messenger)