150 Million Laris Sequester of the State Budget of 2001 is Expected

Resident Representative of the International Monetary Find to Georgia Christopher Lane made first official statement that changes into the state budget, e.g. sequester are inevitable, because the budget could not be fulfilled with current parameters. Exact amount of sequester is not known yet and would depend on incomes. IMF representative considers, that deficit of the income part of the budget would be 40-60 million Laris.

Losses of incomes from privatization of the telecommunication systems are expected as well. Christopher Lane has no doubts that the state would privatize these objects. Georgian Government expects 80 million Laris income to the budget from the privatization process. Thus, we may conclude that the sequester of the budget of year 2001 would be 140-150 million Laris. IMF will not give 12 million USD trench under the program of “Poverty Overcoming and Economic Recovery” unless the sequester is implemented.

The Fund makes two more conditions: increase of electric energy tariffs and elimination of moratorium on timber export.