Matchavariani: Macroeconomic Stability is a Primary Mission of the Gov’t

“Primary mission of the government and the Minister of Finance in particular is to maintain macroeconomic stability and do not exchange fiscal discipline for populist steps,” stated Ivane Matchavariani, Minister of Finance while speaking about the priorities of the 2020 budget at Imedi TV, and noted that the budget of the upcoming year has been designed in accordance with these preconditions.

The Minister said that in the budget of 2020 more emphasis is to be put on ensuring social sustainability in order to continue all the necessary reforms for the further development of the country.

“Even in very developed countries, the governments struggle to resist the pressure of populism. What does it mean? For example they may ask why we increase pensions by 20-30 GEL. Let’s increase them directly by 100 GEL. Or why do teachers have the salaries worth of 300 GEL? Let’s give them 700 GEL… Then the competition for being the ‘kindest’ kicks off, but unfortunately no one thinks of the sources of financing. If we forget about the size of the economy and the magnitude of pressure it has to face, of course, we can say toasts about more pensions and salaries. But there are increased ongoing and reduced capital expenses, irresponsibly taken loans and more. You may win one’s heart in the elections year, give them more pension and salary, but it means that you have abandoned the country to fate for the following years,” noted Ivane Matchavariani.

Translated by Ketevan Kvaratskheliya