Economic crisis exacerbates in Georgia: ex-premier's party

Georgia Materials 23 June 2009 11:48 (UTC +04:00)

Georgia, Tbilisi, June 23 / Trend , N.Kirtzkhalia/

In 2009, the economic growth will drop by 7 percent as minimum, but not by 1.5 percent which was forecast by the government, one of leaders of the Movement for Fair Georgia Shota Gvenetadze said at a news conference.

He said the budget amendments which were developed by the government in June 2009 and submitted to the parliament for consideration testify that the economic crisis exacerbates in the country.

In autumn, the country may face a threat of non-payment of salaries and pensions, Gvenetadze said.

"We need a real budget, but not figures written in papers. We urge the authorities to bring the budget into conformity with reality," he said.

Gvenetadze said tax incomes will be by one billion lari less than the forecast indicator and the planned grant figures worth 554.9 million lari will not be fulfilled.

"The figures in the amendments do not reflect reality, because over last 5 months, revenues amounted to only 43.9 million lari or 10 percent of the plan," he added.

Under the proposed growth of external and internal commitments, deficit will dangerously increase and reach 8.8 percent, said Gvenetadze. "These budget initiatives will further deepen the budget crisis," he said.

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