Georgia was the first country to launch and finalize negotiations and coordinate a new crisis program with the International Monetary Fund, – Georgian Prime Minister Giorgi Gakharia stated in his presentation of the anti-crisis budget at today’s meeting of the Interagency Coordination Council’s economic group.
The Head of Government added that the anti-crisis budget’s parameters are also coordinated with the IMF.
“Based on these parameters, we forecast -4% economic growth, and the budget will miss 1.8 billion in revenues. In terms of all current and capital expenditures, budget expenses will be cut by about 600 million, and the budget deficit, judging by these parameters, is expected to be about 8.5%. These are the budget’s key parameters to be elaborated on and discussed by the Finance Ministry,” the Prime Minister said.
According to Giorgi Gakharia, the Government, through cooperation with international partners, projects that Georgia will be one of the first countries to succeed in post-crisis recovery.
“Next year’s anti-crisis plan forecast -4%, while the 2022 projected economic growth, which is coordinated with the International Monetary Fund, is about 6%. However, we all must remember that this is just a forecast, while unpredictability is the major challenge posed by today’s global crisis. That is why we, both epidemiologically and economically, must be ready for all kinds of unexpected challenges. And that means that we must be extra cautious and maximally prudent and fair in utilizing the country’s scares resources. These are our key principles. For example, we divided targeted social assistance into six months, opting against giving it out at once-and there are many other economic steps dictated by this enormous challenge,” the Prime Minister stated.
Giorgi Gakharia singled out the importance of work seeking tourism sector recovery, also underlining that Georgia is an exceptional country in epidemiological terms, in crisis and epidemic risk management, and that Georgia is hailed as the foremost, best destination.
“We have worked hard to revive the tourism sector. As you know, Georgia is an exceptional country in epidemiological terms, in crisis and epidemic risk management, as recognized by the international community, with many praising Georgia as the best destination. The Government has conducted bilateral negotiations with various countries. In some countries, with our negotiations nearly concluded, the epidemiological situation suddenly worsened, and our colleagues, in our best interests and for safety purposes, asked us to wait, so we are keeping close tabs on statistics. These turbulences are tied to unpredictability. As you know, there are talks about a second wave, or a vaccine to be developed in a month or a year or two. But we all must understand one thing. In terms of combatting the epidemic, anti-crisis measures, and economic recovery alike, our every step must be extremely reasonable, cautious, and in line with our economy. That is why today, as our opponents accuse of referring to populist statistics, we should not fall for it-above all else, we are responsible for the health and income of each of our citizens. Our goal is very simple. We must learn how to manage epidemic risks. Our goal is to detect the virus fast, provide treatment fast, and return people into economic life fast. That is the cornerstone of this budget,” Giorgi Gakharia said.