BAKU, Azerbaijan, April 27
By Tamilla Mammadova - Trend:
The Georgian government intends to reduce the state spending in the amount from 700 million lari ($218 million) to 1 billion lari ($311.5 million) in connection with the coronavirus crisis, Georgian Finance Minister Ivano Machavariani said, Trend reports citing Georgian media.
According to the minister, current expenses also are planned to be reduced by 300 million lari ($93.4 million).
“The current expenses cover business trips, including foreign ones, and various events that will be canceled. As for capital expenditures, the reduction will be from 700 million lari ($218 million) to 1 billion lari ($311.5 million),” the minister said.
It is still difficult to determine the exact amount of the reduction in the capital expenditures, since it depends on many factors, Machavariani added.
“We refrain from giving exact numbers at the moment. The longer the quarantine lasts, the more we will have to save. If the situation allows, we will try to resume the implementation of those projects that have now had to be temporarily suspended,” he said.
Meanwhile, the outbreak of coronavirus has dealt a serious blow to the economy of Georgia. Almost all areas of business represented in the country suffer losses, while many people were left without work. To overcome the crisis, the authorities spent three weeks in negotiations with international financial institutions to receive financial assistance.
By the end of the year, the country will receive $1.5 billion for the development of the Georgian economy.
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