To obey the natural rules of capitalism, interfere less in business, and think about tax cuts, these are the tips-recommendations that financier Irakli Eradze gives to the Georgian government by 2021.
"Terrible economic year," Irakli Eradze said about 2020, adding that not only the pandemic but also the parliamentary elections had created economic difficulties. "This particular minister cabinet may learn something from this particular situation and start thinking differently," he said, so he is still optimistic about next year.
"In 2020, economic policy was mainly based on populism, which contributed to the fact that we had a tough year. I also understand that seeking funds externally was inevitable; however, how well the money was spent is another matter. I disagree with the opinion that funds should not be spent on social matters; It is better to distribute money to people and decide for themselves what to spend the money on during the crisis - in food, baby shoes or taxes," said Irakli Eradze.
It is noteworthy that he is not the only financier who has criticized the government for its mortgage interest subsidy program, saying it was wrong. "There were such counterproductive steps in 2020. You can not intervene in the market at this level and help the wealthy with the money taken for everyone. Artificially maintaining price in the market is not right. Then what do we do in 2021? You may keep the price for a while, but how long will you continue to subsidize? "Especially considering that may have an economic downturn in 2021 too," said the financier.
As for the predictions, Irakli Eradze believes that next year will be much harder because the start is difficult, compounded by the post-election political crisis.
"For the pandemic to improve everything, the country needs some time for the economy to recover. It will be a difficult year, and the newly approved budget may change soon because the virus is unpredictable and there is a political crisis in the country," he said.
