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Finance Minister: Corrected budget sacrifices administrative costs only

By Tea Mariamidze
Friday, June 12
Finance Minister Nodar Khaduri states that within the framework of state budget corrections, ongoing and administrative costs will be reduced.

According to him, none of the social projects will be affected by the adjustments.

"Only administrative and ongoing costs will be reduced, and this will not apply to social projects,”- he said.

As for the general situation in the country’s economy, the Finance Minister once again stressed that the situation is caused by external factors.

"External factors caused a decrease in exports and investment. The country’s economy was affected by regional factors, which is mentioned in reports from all experts and international organizations that impartially assess the situation.

“If you look at our neighbors, their exchange rate and economic growth, you will see that the situation is decidedly better in Georgia," he said.

Khaduri also stated that more detailed and clear information concerning the budget correction will be revealed in the next week.

“We already know that the economic growth in 2015 will be 2% instead of 5% and inflation will be 3%. We also know that the emission of the budget obligations will be reduced by 100 million GEL. Names of the ministries that will have to tighten belts will be known in the next week, but there also might be growth for some ministries,” Khaduri said.

Minister of Agriculture Otar Danelia stated that “ It will not be an easy year. He said that there will be certain reductions in the ministry budgets, but the reductions will not be related to the social projects, cheap agro-programmes among them.

The opposition United National Movement(UNM) accuses the government of the wrong policy that together with the external shocks led the country to the current economic crises.

The UNM believes that only their past experience will bring the country out of the recent hardship.