Analysts challenge budgetary optimism

Independent analysts think that the 2009 budget was drawn up with exaggerated optimism. Expenditure has exceeded revenue due to ungrounded projections. They therefore suggest that the 2010 budget should be more realistic, with expenditure cut or removed altogether for less important projects.

Davit Narmania thinks that the budget should not include expenditure which projected revenues cannot cover, as this will force the Government to take out yet more loans. On the one hand the administration proposes tightening belts but on the other it is increasing expenditure.

Analysts believe it is better to have pessimistic budget projections rather than optimistic ones because it is easier to adjust to higher than expected revenues than lower ones. The 2010 budget is under discussion but only a few details of it are available and debates are approaching soon.