Directions of fiscal policy improvement (Macro and regional point of view) (ABSTRACT)

Tinatin Chukhrukidze

Formation of really independent and strong Georgian state, its integration in civilized international structures is much dependent on stable finances. It is clear, as finances are the most substantial economical basis for country’s independence.

Therefore, great importance is attached to what kind of fiscal policy is pursued at macro and micro level. As it is justly observed, “fiscal policy is the unity of the state purposes and measures aimed at the mobilization, distribution and use of financial resources by a state. This, to wide extent, comprises the goals and objectives of budgetary and taxation field as well as money circulation, inflation, monetary resources of the country, customs, credits, banking, and etc.”
Before the revolution in many parts of socio-economic body of Shida Kartli the very difficult situation is said to have become even more aggravated. There were not enough funds that would serve as main leverages in territorial units (i.e. in villages) not only for the further development of different fields of education, healthcare, culture etc., but also for their maintenance.
In the regions, expenditure part of the budget has not been implemented systematically. As it was observed, it became a tradition to make repeated downward adjustments. The facts of the so called “freezing” of pensions, salaries and allowances became frequent. As a result, local budgets face serious problems nowadays.
Implementation of radical economic reforms in Georgia requires great financial efforts to solve the most difficult problems of the country’s development,
The necessary condition for financial objectives of economic development and poverty reduction is the establishment of relevant structures and institutions of democracy and market economy with the support of international economic organizations.