Georgia to modify state investment management system

Starting in 2018, a state investment management system will be implemented in Georgia, announced Finance Minister Mamuka Bakhtadze.

In the mid-term period a complete cycle of investment projects will be developed. Before launching the investment project a proper analysis and research will be conducted. Only after that will a decision be made on financing the specific project which of course will increase the efficiency of capital expenditure,” said Bakhtadze.

The minister stated that in 2016-2017 significant measures were taken for improving fiscal risk analysis.

Bakhtadze also said that it is necessary to have the correct fiscal framework rules in order to manage a sustainable fiscal policy.

Following recommendations from the International Monetary Fund (IMF) Georgian authorities have prepared "further steps” for implementing the relevant fiscal rules.

In September of this year the IMF published its latest Fiscal Transparency Evaluation report, which said that fiscal transparency practices are in place in Georgia.

The report recognised 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.