Finance Ministry excludes budget cuts

The Ministry of Finance has published the budget report for the first quarter of 2009. The projected income for the quarter was GEL 1. 3071 billion, however GEL 1. 3861 billion was accrued, 1% more than expected. Officials hail this figure as a success, and assure us that there will be no budget cuts later this year, however independent analysts have a less optimistic view.

Economic analyst Shota Gvenetadze envisages a serious deficit in budget revenues by the end of the year. State officials also admit there are some negative trends but blame the opposition for this.

If political processes continue as they are now budgetary revenues will be under threat, states Nika Gvaramia, Minister of Education. However Minister of Finance Kakha Baindurashvili is more optimistic, though admitting that the world financial crisis has already had a negative impact on Georgia.