Georgian budget is filled with domestic loans

The National bank of Georgia has the option to sell bonds and thus, take out domestic loans and to fill budgetary revenues. As of today, the National Bank of Georgia has issued bonds totaling GEL 374 million. Analysts believe that if not for the budgetary revenues, the budget would have a tremendous deficit. The situation has become even more complicated because the government is spending money to cover many populist projects– in particular, much of those finances are being used to cover pre-election promises. Moreover, what is even more dramatic is the fact that very often, foreign companies and specialists are working on those projects, and therefore money from the Georgian budget goes into the pockets of foreign companies.