The necessity of fiscal consolidation and current challenges in Georgia in post pandemic period
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Date
2023
Authors
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Journal ISSN
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
After increasing fiscal deficit during Covid-19 pandemic, due to higher social spending and lower
budget revenues, fiscal consolidation is crucial in the post-pandemic period, which means fiscal
policy tightening. The current challenges come from the organic law, that increase of taxes is possible
only after the referendum. So, this instrument does not make fiscal policy flexible and attention
goes to the expenditures. Besides, consolidation through current spending supports economic
growth, while reduction of capital spending might obstruct growth.
Description
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იანვარი, 2023
Keywords
Citation
Conference Proceedings: "The World Economy in the Post-Pandemic Period: Implications and Challenges", Tbilisi, 2023, pp. 178-183