The International Monetary Fund (IMF) reports that Georgian fiscal reforms are being successfully implemented in its regional economic outlook on the Middle East, North Africa, Afghanistan and Pakistan published today.
The IMF reports that Georgia has increased the efficacy of fiscal policy by strengthening fiscal institutions, reducing corruption and improving the business climate.
The institute notes that Georgia has implemented many reforms in public sector and fiscal institutions.
The study notes that the Georgian government has fought corruption by improving fiscal institutions by adopting a new budget law, streamlining tax policy and strengthening tax administration, improving the coverage, analysis, and reporting of fiscal risks.
“These reforms have led to significant improvements in fiscal outcomes”, reports the IMF.
“Fiscal transparency, measured by the Open Budget Index, has improved markedly. Tax revenues rose and the efficiency of revenue collection has been higher than among peers…The adoption of flexible fiscal rules helped foster fiscal discipline, limited the rise in public debt, and reduced the volatility of government expenditure,” reports the IMF.
The IMF gives recommendations to the Georgian government in the report, saying that efficiency of spending can be enhanced by improving the management of public investments and state-owned enterprises. Also, the modernisation of tax policy and revenue administration could help Georgia ensure sustainable revenues, says the study.
In its Regional Outlook the IMF touches on social unrest in the Middle East and Central Asia and says that ‘the Reported Social Unrest Index (RSUI), which counts media reports of social unrest in member countries, shows that reported social unrest has risen to highs not seen since 2014.’
The IMF points out the recent public protests in Algeria and Sudan, accompanied by Georgia and Kazakhstan.”The evolution of [public protests] highlights the urgent need for reforms to deliver higher and more inclusive growth, and will shape policymakers’ options for addressing the economic challenges faced by the region,” reads the report by IMF.
