Capital market and its influence on budget implementation (ABSTRACT)

Natela Vashakidze

One of the most important factors for economic growth and national budget revenues increase in any country is formation and improvement of capital market.

Because of transition to market economy, Georgia pays special attention to the loan market growth. The market should manage to mobilize detachment of small financial resources and direct them toward the recovery of national economy.
Economy’s normal course of development invariably serves to activate investment activities. Attraction of investments and their effective use is the most important way for driving economy out of economic crisis.
GDP growth rate in the country does not make it possible to mobilize internal sources of investments. There is only one way left ? mobilization of foreign investments. The country should have an appropriate investment climate with large content. Any investor is interested in a country’s culture, its stability level and economic growth.
International resonance of the “Roses Revolution”, settling of relations with IMF and other financial-economic organizations increased Georgia’s international authority and factor of trust toward the country. Therefore, legalization of shade economy and progress of financial policy served to increase population’s incomes.