“Government strategy for the state budget calls for cutting the accrued expenses to leave fiscal space for major infrastructural projects”, Francois Painchaud, IMF Resident Representative in Georgia, told the BM.GE. Salaries constitute one of the key components of the accrued expenses.
“In 2017 the Government managed to cut expenses. Government has made progress in this respect. We have seen a law on reformation of public offices. Reduction in similar expenses will ensure wider pace for public investments and this is necessary for inclusive growth”, Francois Painchaud said.
The IMF expects the inflation rate to decline to the target indicator, he added.
“The 2017 fiscal deficit will be about 3%. This factor reflects good revenues, on the one hand, and meeting the parameters of expenses, on the other hand. It is important to maintain accrued expenses to be able to increase capital commitments. As a result, we will receive more inclusive growth in the future.
In 2017 the inflation index was higher than the NBG target indicator. The indicator hit 6.7% at the end of 2017, but the figure declined to 4.3% at the beginning of 2018”, Francois Painchaud said.