The messenger logo

Budget problems

By Messenger Staff
Thursday, July 16
State officials, the Prime Minister, Minister of Finance etcetera have assured the population that the country has no budgetary problems and all parameters suggest that the country is resisting the world crisis. Opposition members however challenge this. The Movement for Fair Georgia, led by Zurab Noghaideli the former PM and Minister of Finance, has recently begun seriously criticising the economic situation in the country.

Party member and economist Shota Gvenetadze is stating that the situation in the Georgian economy is alarming and there is a big difference between the reality and the prognosis aired by the Government. Taxation revenues show that incomes are reducing. 2009 budget revenues have already decreased by GEL 500 million and the party predicts the final deficit for the year will be another half a billion GEL.

Gvenetadze has expressed his skepticism about the very small amounts of grants entering the budget. Noghaideli predicts that the Government will have problems paying state salaries and pensions. He says the country is entering a very serious financial crisis. The budget has serious problems and the Saakashvili administration is not taking appropriate steps to improve the economy.

Noghaideli thinks that state officials are primarily interested in maintaining their positions. He says the budget is being spent on maintaining the current leadership in power rather than regenerating the country’s economy.