Georgia sinking into fiscal crisis - ex-PM
TBILISI. Jan 15 (Interfax) - Former Georgian prime minister Vano Merabishvili said a fiscal crisis has broken out in Georgia, blaming it on the government of Premier Bidzina Ivanishvili, which took office in October after his party won parliamentary elections but "has no clear economic program."
"Unfortunately, a fiscal crisis has begun in Georgia as a result of lower economic activity, which manifests itself in decreasing exports, imports, production and trade," Merabishvili, who became general secretary of the United National Movement party after the latter lost the October 1 elections, told a briefing on Tuesday.
Debts have been growing in the economy, he said.
"In order to avert a crisis, today's government has restored the former system of advance payments that existed in the era of [President Eduard] Shevardnadze until 2003, making companies pay taxes for January in December," Merabishvili said.
There are three principal factors behind the alleged crisis, he argued.
"One of the causes is that restrictions are being put on business. The tax inspectorate, the financial police, the prosecution service, and - which is particularly alarming - Interior Ministry services carry out daily inspections in the private sector," Merabishvili said.
He said that, when he was interior minister, it was strictly forbidden for all departments of the ministry to make financial inspections.
"Another factor is that infrastructural projects have been halted, which has set off growth of unemployment, and consequently a decrease in state revenues," Merabishvili said.
"And finally and most importantly, the new government has no clear economic program," he said.
He promised that United National Movement would release a three-month statistical report on January 22 on the new government's performance.
"It's a very alarming situation, which means the government must take urgent measures," he said.