Report: IMF reviews Georgia’s Fiscal Transparency Evaluation

Fiscal transparency practices are in place in Georgia, finds the latest Fiscal Transparency Evaluation report published by the International Monetary Fund (IMF).

The report assesses Georgia’s fiscal transparency practices against the standards set out in the IMF’s Fiscal Transparency Code and was carried out in December 2016 by the IMF’s Fiscal Affairs Department.

Georgia has taken important steps to enhance fiscal transparency over the past decade. Fiscal reports have become more comprehensive and timely, fiscal forecasts and budgets have become more forward-looking and policy-orientated, and disclosure of fiscal risks has improved substantially,” read the report.

Reflecting these efforts, the report found that many elements of sound fiscal transparency practices are in place in Georgia. Assessed against the standards of the Fiscal Transparency Code, the report found that Georgia meets the good or advanced level practice on 18 of 36 principles, and the basic standard on a further 10 principles,” the report said.

The report recognises several key strengths of fiscal transparency practices in Georgia. For example, fiscal reports are published in a frequent and timely manner and include extensive information on the use of public resources. Budget documentation presents medium-term macroeconomic forecasts and spending plans; is prepared in accordance with a clear organic budget law; and, is subject to independent scrutiny.

At the same time, the evaluation highlights several areas where Georgia’s fiscal transparency practices could be further improved. In particular, fiscal reports and statistics do not provide a complete picture of general government activity; central government annual consolidated financial statements are not subject to independent audit; there is no reporting on compliance with fiscal rules; and mechanisms to mitigate fiscal risks related to public corporations and power-purchase agreements are not yet fully developed.

However, efforts are underway to address these and other shortcomings, said the IMF.