2017 state budget was oriented on fast economic development, Georgia’s Prime Minister Giorgi Kvirikashvili said at the governmental meeting.
"The 2017 state budget is focused on fiscal sustainability, economic development and the rapid growth," Georgia Online cited Giorgi Kvirikashvili as saying.
If the Tax Code is amended, the excise duty on the import of cars with the right wheel will correspond to triple size of the excise tax, and the excise rate per ton of gasoline will increase from 250 GEL to 500 GEL (from $93 to $188) per ton diesel fuel - from 150 to 400 GEL (from $56 to $150).
The official price of the US Dollar is 2.6504 GEL.
The editor-in-chief of the Economy of Georgia magazine, Emzar Jgerenaia, speaking to Vestnik Kavkaza, Kvirikashvili's words mean an increase in budget spending on the economy. "In this case, the government has increased funding for such industries as construction, industry, infrastructure. The state, together with the Development Bank, is building now roads, bridges, which is an effective financing of the economy and its development," the economist stressed.
At the same time, a high growth rate means the level, which would be 1% higher than planned. "I think we are talking about the growth of 5-5.5%. This is more than the planned 4%, but not 10-12%. Those realities that exist in our country and in relations with our external trading partners indicate that the real growth rate of the economy is 5%," Emzar Jgerenaia explained.
As for the increase in fuel excise taxes, due to which the protests are being held in Tbilisi, the increase in obligatory payments to the budget will not necessarily accelerate inflation, the expert pointed out. "This issue should be discussed together with the issue of withdrawal of income taxes. On the one hand, the refusal from income taxes will provide $0.5 billion for business investment. On the other hand, an increase in the excise tax on gasoline will increase the price, but it will not have a catastrophic impact on inflation. Georgia's inflation is low now - 1.5%," he believes.
"Economics is Georgia's main task at the moment. It is necessary to increase investment and job creation. The economic growth is the most important thing, which the republic needs now," the editor-in-chief of the Economy of Georgia magazine concluded.
