Investment projects as a stimulating lever of country’s economic growth (საინვესტიციო პროექტები, როგორც ქვეყნის ეკონომიკური ზრდის მასტიმულირებელი ბერკეტი)

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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
Nowadays economic di􀋺culties in the country make especially important to activate specific result-oriented, scheduled state capital (investment) projects, with clear system of duties/obligations of the persons responsible for execution, and provided with financial and material resources. In view of the above, it should be considered completely logical for the Georgian government to adopt such normative acts regulating the methodology of investment project management as: the Government of Georgia 22 April 2016, #191 decree and Minister of Finance of Georgia 22 July 2016, #165 order. Despite the positive assessment of the selection and evaluation process of investment projects, using the indicators of economic e􀋺ciency provided by the above-mentioned documents, despite the clear and anti-corruption nature of the evaluation process, with deficit budget funds we consider it appropriate to make relevant changes in the #5 Annex of the Minister of Finance of Georgia 8 July 2011, #385 order on “Approving the Program Budget Development Methodology”. In particular:  Establish the value of the increase in export and/or replacement of import resulting from realization of the projects as an evaluation criterion of the investment project(s);  Add to the investment project evaluation indicators the ratio of funds guaranteed to be distributed within the country, allocated from the budget funds intended to finance project(s), to the total value of required budget funds allocated to fund projects;  By the normative act of the Government of Georgia, define and periodically review the minimum limits of ratios of domestically allocated funds to total budget allocations for projects, di􀋹erentiated based on sectoral or/and newly established job positions, which will be considered one of the main criteria to obtain budget funding for a particular project;  When the above mentioned ratios, the financing of the investment project (s) from the state budget will be possible only in exceptional cases, on the basis of the relevant act issued by the Government of Georgia.
Description
 Khutsishvili A., Chelidze L., Chelidze D. (2019) “saqartvelos saxelmwifo valis dinamika da martvis taviseburebebi” [“The Dynamics of the State Debt of Georgia and Management Features” Eastern European University. Scientific Papers # 1, Tbilisi. pp.32]  Organic Law of Georgia on Economic Freedom. 2011 year.  Law of Georgia on Public Debt. 1998 year.  Law of Georgia “Budget Code of Georgia”, 2009.  Resolution 191 of the Government of Georgia of April 22, 2016. On the Approval of the Investment Projects Management Guide  Order No. 165 of the Minister of Finance of Georgia of July 22, 2016 “On Approval of the Methodology of Compiling the Program Budget” On Amending the Order of the Minister of Finance of Georgia of July 8, 2011 № 385  On Making Amendments to the Order N385 of the Minister of Finance of Georgia of October 8, 2018 » Order # 411 of the Minister of Finance of Georgia of December 26, 2019 “On the Establishment of a Working Group to Implement Measures to be Implemented for the Evaluation of Investment Projects”  https://mof.ge/5261Political Analysis of Preliminary Selection of Investment Projects in the Implementation of Investment Project Management Reform ”  https://mof.ge/images/File/strategia/2018/PFMRS-2018-2021-2606-final.pdf  Public Finance Reform Management Strategy 2018-2021 p. 13  https://www.radiotavisupleba.ge/a/- “Why No One Can Solve the Problems of Infectious Diseases Hospital” ?Last View 27.03.2020/  http://www.geostat.ge/ka/singlecategories/99/sakartvelos-sagareo-vachroba  https://mof.ge/saxelmwifo_biujeti_wlebis_mixedvit  www.matsne.gov.ge/
Keywords
GDP; state budget; non-financial assets; investment projects
Citation
Economics and Business, №2, 2020, pp. 134-146
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