Georgian finance minister explains importance of adopting economic freedom act

Business Materials 14 July 2011 16:44 (UTC +04:00)

Georgia, Tbilisi, July 14/ corr Trend N.Kirtzkhalia /

Georgian Finance Minister Dmitriy Gvindadze thinks it is necessary to adopt an act on economic freedom to develop the private sector.

Gvindadze said to a news conference that last week the parliament adopted a law initiated by the president on economic freedom, which is an important document for the development of business and private sector in the country. The minister said that the most important principle, which the law provides, is that the adoption of new state taxes and setting the upper limit of tax would only be possible through a referendum.

Also, Gvindadze said that for the long-term sustainable economic development, the law sets a maximum limit of macroeconomic parameters, particularly the ratio of budget expenditures to GDP will not exceed 30 percent.

"In addition, the government is taking additional steps in maintaining the fiscal stability. In particular, the law provides for the ratio of budget deficit to GDP not exceeding three percent, and the ratio of public debt to GDP no more than 60 percent. These options will allow us in the long term to maintain macroeconomic stability that will increase investor confidence in the country and contribute to investment inflow," said the minister.