The situation after the devaluation of national currency is felt by every citizens of our country. Inflation naturally increases the income of the state. That is why state prefers that the difference in currency exchange to be paid by population and to get additional money. Instead of paying some loan or optimally use money, the government decided to use money allocated because of new exchange rate of currency as soon as possible.
The reason of the devaluation Lari is not economical but it is initiated by the government. State deficit is very high and this one of the way to cover it. It is kind of grant from the people without informing them about it. Situation is clarified by decision of government to increase state budget by 150 million Lari. It means that difference in exchange rate is already destined for payments.
The talks about alocation of the money for Social projects and regional transfers are just farce. the money for regional transfers will be used to pay the people involved in the falsification of the recent elections. While talking about additional 35 Million for social projects they are hiding the fact of increase of the costs the Ministry of Finance by 50 Million.
Today we are paying 5, 3 times more than in year 2003. State is trying to get us much as possible financial recourses to cover own costs leaving no money to business which is left with only option to increase prizes.
What we are getting from this situation:
1. Permanent devaluation and increase of income by inflation. It means that state does not have any recourse to get money by other means. The financial pressure will be on consumer.
2. The dept will get increasingly higher. Within a year it will reach 3 billion which is impossible to cover by grants or loans. Economy does not have own recourses.
3. There no money left to save. Even the middle class has no opportunity to save some income taking into consideration increased prizes.
Current government has no ability to deal with economical problems of the country. Only solution is new government with new economical policy and new perspectives.






















Hardtalk - Mikheil Saakashvili pt 1