Eva Bochorishvili, head of Galt&Taggart Research Department considers that the 3rd draft of the state budget is significantly amended. The final version of the State Budget 2021 must be approved on December 25.
“Macroeconomic parameters have been amended in the final version of the budget. As of the 3rd draft of the budget, economic growth of 4.3% is expected in 2021, while economic downturn of 5% - in 2020. However, both parameters differ from our forecast. We predict, economic drop of 5.5% in 2020, and economic growth of 3.5% in 2021 if tourism is no restored. But, in the case of partial restore of tourism sector we forecast economic growth of over 5%”, Eva Bochorishvili noted.
According to her, the current expenditure parameters have been changed in the final version of the budget, which has been much less in the previous version. Current expenditures are projected at 25% of GDP, as well as growth in capital expenditures is maintained at 8% of GDP. Bochorishvili notes that it is good.
