Stimulating business

The revenues accruing to the 2009 budget have decreased by GEL 500 million. With such figures as a background the state plans to increase budgetary expenditure by GEL 312 million to stimulate the economy.

Some economic analysts however consider this is a wrong step and suggest decreasing budgetary expenditure rather than increasing it. Economist Paata Sheshelidze thinks that the state becoming an investor in itself is a way to waste money and he predicts that the peak of the crisis in Georgia will be in September.

There are other opinions however. Economist Emzar Jgerenaia supports the idea of stimulating the economy with budget funds. He thinks that a new anti-crisis strategy should be elaborated containing special measures to boost business. He thinks GEL 500 million will not be enough to rescue the country from the crisis.

Officials are more optimistic. The Prime Minister promises that substantial donor funds will enter Georgia in the autumn. Gilauri also thinks that money invested in Georgian economy has matured and is generating positive results.