President Proposes to Cut Budgetary Expenditures

(Tbilisi, July 14, 2003, Civil Georgia) President Shevardnadze has submitted to the Parliament for discussion a document, considering cutting of the budgetary expenditures by 95, 5 million Lari (USD 44 million), as required by the IMF. 

“Cutting of the budgetary parameters is a painful measure, however it should be implemented,” Georgian President said in his Monday radio broadcast on July 14.

He named contraband as one of the basic reasons of budgetary shortfall, urging the law enforcers to do its best to cease contraband turnover in the country. 

Shevardnadze said Georgia is ready to fulfill the IMF recommendations, claiming the fund will not suspend cooperation with Georgia.

The IMF Mission that visited Georgia on June 24-July 7 issued a document listing recommendations the Georgian authorities should fulfill before mid-August.

Beside the correction of the 2003 budget the IMF recommendations also include an immediate halt to the accumulation of domestic budget arrears and the development of a plan to securitize the outstanding obligations; prompt passage of the government tax reform bill, simplifying the Tax Code without any net revenue loss; and increase of electricity tariff.

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