State budget issues

In the first quarter of 2014, 97% of the Georgian state budget was fulfilled with only a 3% deficit. This data is from the National Statistics Office of Georgia (GeoStat).

Analysts think that in general, January-February are “lazy” months and one cannot judge the budgetary performance relying only on the data of three months. However, at the same time a deficit is a deficit.

Many analysts are optimistic about the 2014 budget, based on a 5% economic growth in the country with inflation of 3.5%.

Economic growth in the country is hindered by two major conditions: intensive political confrontation in the country’s domestic policy and the uncertainty of conducting business.

It should be mentioned that much of these problems have been inherited from the United National Movement’s governance, which used to create unfavorable conditions either for business or politics.

The new Georgian Dream administration claims that it has lifted pressure on business and the environment for economic activities in the country has become easier. However, so far there are not any clear results visible in the country. Unemployment, small pensions and some other issues create the sense of uncertainty among the population.