Đăng ký: VietNam News
| (CPV) – ADB is providing a USD75 million loan to the Government of Georgia to support a reform program to help strengthen its finances and support inclusive growth. “This assistance will help the government to create the fiscal space it needs for fully inclusive growth,” said Tariq Niazi, Principal Public Management Specialist in ADB’s Central and West Asia Department. “Strengthening public debt and budget management, overhauling the pension system, and improving the environment for private investment will help create new jobs and provide better social protection for families.” After a slump during the 2008 global financial crisis Georgia’s economy has expanded steadily, with gross domestic product growth averaging 5.7% annually from 2010 to 2013. However, income inequality is prevalent and unemployment persists. More than 14% of the labor force was jobless in 2013. Public finances have also come under pressure, with a widening fiscal deficit driven by rising social spending—with state pensions the largest item at around 18% of public expenditure—and limited revenue sources. The government has laid out a Socio-economic Development Strategy through 2020 which sets out priority actions to address fiscal problems and put the economy on a firm path for inclusive and sustainable growth. ADB’s assistance supports this strategy. The program supports reforms to improve management of public finance and fiscal risk over the medium term, with upgrades to current funds management and risk analysis systems. To bolster revenue, tax collection procedures are being strengthened, and steps taken to recover tax arrears. To boost domestic savings the existing state universal pension system will be revamped, to help establish a sustainable private pension savings system. Capital markets improvements will provide more investment options for pension funds, and will help mobilize more long-term finance and help encourage public–private partnerships for infrastructure. The government’s recent initiatives to enable better access to funding for small- and medium-sized enterprises are supported by the program. These firms make up 96% of registered businesses and employ over 40% of the workforce. Business promotion measures include establishing the Entrepreneurship Development Agency and the Georgia Innovation and Technology Agency, with staff and budgets. The USD75 million ADB loan is part of a planned three-tranche financing program, with funds released as policy actions and reform milestones are met. The remaining two tranche loans will be set at USD50 million and USD75 million. The full USD200 million program will run from 2014 to 2016./. |
