JUNE 23 2015 (The Conway Bulletin) – TBILISI – Georgia’s finance ministry said it will cut the national budget by 140m lari ($53m), 1.75% of the original budget, because of an economic slowdown.
Cuts will be made across government but hardest hit will be education, agriculture and the interior ministry.
PM Irakli Garibashvili said the government should have revised its budget earlier.
“Almost all the countries in the region had to revise their budgets because of the crisis,” he told parliament.
The government said that Georgia’s economy would grow by around 2% this year, far below the 5% initially anticipated.
A downturn in Russia’s economy and a slump in energy prices has hit Georgia hard. It is unclear if these cuts will be enough or more will follow.
The popularity of the ruling Georgian Dream has been slip- ping, in part because of the economic slowdown.
ENDS
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(News report from Issue No. 237, published on June 25 2015)