The necessity of fiscal consolidation and current challenges in Georgia in post pandemic period

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Ivane Javakhishvili Tbilisi State University Press
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.
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Conference Proceedings: "The World Economy in the Post-Pandemic Period: Implications and Challenges", Tbilisi, 2023, pp. 178-183