The 2007 state budget will be doomed to multiple revisions after its adoption because the draft document reflects flaws in planning the fiscal year and the lack of professionalism of those developing the draft budget, economic analysts Revaz Sakevarishvili writes in his article published by the daily 24 Saati (24 Hours) on December 20.
The draft of the 2007 state budget, which will be discussed by parliament before the end of December, is non-transparent, the author says. He adds that the further increased fiscal deficit to GEL 426 million from GEL 286 million in 2006 and a projected inflation rate of 6% are “too optimistic.”
“Counting on false data is one of the major problems that the Georgian state budget has suffered from for many years. This may have two reasons, and one is purely political, as the authorities are initially trying to intentionally provide minimized budgetary targets so that later they can boast about collecting more revenues… But there is another reason as well, which is linked with a lack of professionalism: the authors of the budget fail to properly register the real, existing revenue base in the country,” Sakevarishvili says.
In the course of 2006, funding for the Defense Ministry increased from the initially planned GEL 392 million to GEL 605 million. The 2007 draft budget sets the Defense Ministry’s funding at GEL 398 million. Ministry for Refugees and Accommodation funding increased by 76% in the course of 2006.
“These examples show that budget planning is being done unprofessionally,” Revaz Sakevarishvili says.