Govt Agencies Instructed to Present Administrative Spending Cut Figures

Government has instructed state agencies under its direct subordination to present spending cut schemes before March 16 amid economic slowdown as the authorities plan to revise their initial 5% growth forecast down to 2%.

Speaking at a government session on March 5, Finance Minister Nodar Khaduri said that the ministries and other government agencies have been instructed to reduce spending on renovation works of their offices to unspecified “minimum level”; to “limit” purchase of new vehicles and cutting fuel expenses by 30%, not applying to law enforcement agencies; to decrease by 20% representation expenses of officials and to reduce to “a minimum level” number of work trips. The list also includes instruction not to purchase upholstered furniture, according to the Finance Minister.

He said that the government is “recommending” local self-government bodies and other agencies, which are not under the government subordination, to also be in line with these instructions.

Khaduri said that after gathering all the information about precise figures on planned spending cuts, it will become possible to launch working on revision of this year’s budget, “if of course there is a need for that.”

Spending cuts, he said, will not apply to infrastructure and social programs.

Economy Minister, Giorgi Kvirikashvili, said on March 5 that the government is not going to increase taxes and will limit the increase in the budget deficit through administrative spending cuts.