MP Says Budgetary Amendments will Stimulate Inflation

Vladimir Papava, a lawmaker from the ruling National Movement party, who is the deputy chairman of the parliamentary committee for budgetary and financial issues, said that the planned increase in state expenditure by GEL 430 million would intensify current inflationary pressure.

?Today inflation is already high in the country and it would be wise not to add to state spending by incorporating funds generated from privatization,? Papava said on September 11.

Officials from the Georgian National Bank echoed Papava’s concerns at today?s session of the parliamentary committee for budgetary and financial issues.

Finance Minister Nika Gulauri said, however, that ?this will cause no problems if the Finance Ministry and the National Bank act jointly.?

Prime Minister Zurab Nogaideli said recently that the level of inflation would be maintained below 8% this year. 

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