Home / Economy / PM: We have Created 154 New Agriculture Enterprises and Expanded 700 Ones
Giorgi Kvirikashvili
Photo/ Die Zeit

PM: We have Created 154 New Agriculture Enterprises and Expanded 700 Ones

In 2017 Agara-Zemo Osiauri and Zestaponi-Kutaisi road, Kobuleti bypass road construction works will end, Prime Minster Giorgi Kvirikashvili told the government meeting on December 29.

In 2017 Works will start in the following key directions – Zemo Osiauri-Chumateleti, Samtredia-Grigoleti, Batumi bypass road, Khulo-Zarzma road, Baghdati-Abastumani, Zemo Imereti-Racha, Tusheti and Khevsureti roads, Devdoraki tunnel, Kvirikashvili said.

“We have developed important tax stimulus in the direction of economic reforms that is oriented on maximum promotion and enhancement of private sector – in the event of reinvestments, the business will not pay profits tax. Therefore, business sector will maintain about 600 million GEL for expansion plans and create new job places.  We have already implemented significant tax changes in the legislation. Tax environment will become more friendly and will maximally incentivize investments. We will further continue and expand all the programs that promote entrepreneurs, beginner business, innovative business projects – this is Produce in Georgia program, agro credits and agro assistance programs, Startup financing and so on.

We have already received specific results – government has issued 5 289 000 GEL subsidies  to 10 companies as part of Produce in Georgia program. As a result, the mentioned companies have already paid 5 090 000 GEL to state budget for 2 years. A total of 313 new job places have been created. This signifies after subsidization is stopped, this tax will become net revenue in state budget and employed citizens will remain employed. This is a very good effect that this program has brought.

In whole, 235 projects were implemented as part of Produce in Georgia program over the past 2 years. Total investments marked 522 million GEL and 11 thousand new job places were created.

Moreover, in 2016 we started Startup Georgia project and more than 60 new business projects were financed. Yesterday we awarded 9 new winners and we have issued 900 000 GEL in this direction. This is the sub-sector with much economic growth potential and the government will continue efforts in this direction. This is transformation, but the major effect from this program is related to changes in thought so as young people think of becoming employers.

A total of 154 new enterprises were created in agriculture sector and 700 enterprises were expanded, including 21 new enterprises were unveiled in 2016.

All these state projects aim to form entrepreneurial spirit in the society and they are very important  for transformation of thought of young people so as they become entrepreneurs and create new job places in the country”, the Prime Minister said.