Government officials attend presentation of Finance Minister’s report

The presentation of an early report of the Ministry of Finance was held on December 9. The event was attended by government officials and international representatives in Georgia.

The event was opened by the Minister of Finance, Ivane Machavariani. The presentation was held at Sheraton Grand Tbilisi Metechi Palace.

Ivane Machavariani emphasized the key areas that are important for the effective management of public finances - budgetary policy, debt management and tax policy. He also spoke about the steps taken to implement the simple and fair principles of tax administration and the reforms in the area of customs services and infrastructure development.

Speaking about tax policy, Finance Minister Ivane Machavariani focused on recent reforms aimed at liberalizing tax sanctions, as well as measures to enhance the culture of declarations.

According to Ivane Machavariani, the approach to tax audits has changed substantially this year, and instead of 3-year full-field audits, the focus has been on thematic audits.

As Machavariani said, this and many other systemic upgrades have resulted in an exaggeration of GEL 130 million above the originally planned rate of tax revenue.

Fiscal sustainability is the top priority for the Finance minister. He said there was a significant reduction in the budget deficit, which remains within 2.5-2.7 percent of GDP. As Machavariani noted, the fiscal policy of the country is based on the updated fiscal framework prepared in accordance with the recommendations of the International Monetary Fund.

Several ministers and the Prime Minister of Georgia, Giorgi Gakharia attended the presentation. As Gakharia told reporters after the meeting, new jobs are the main challenge of Georgia’s economy, and every state institution, the Ministry of Finance and others, are working on ensuring that there is a strong business in the country and that strong business creates new jobs.

According to the Prime Minister, the country has seen an increase in FDIs, mainly at the expense of reinvestments.

The Head of Government, in his assessment of the Finance Ministry's report, pointed out the public finances and fiscal policy aspects.

"Public financial management is a key component of today's report. Public financial management is principally important both for the quality of bureaucracy and for the rapid development of our economic situation. Equally important, of course, is the fiscal policy aspect discussed today by the Minister. And the two factors define macroeconomic stability,” noted Gakharia.

As he said, statistically, the Finance Ministry has improved its performance in terms of risk management, debt management, and many other directions. “Consequently, we believe that it will reflect in the economy in the near future," added the PM.