“Infrastructure works undoubtedly affect the economy’s development but temporary”

“Infrastructure works undoubtedly affect the economy’s development but temporary”

access_time2019-12-06 14:37:17

The Ministry of Infrastructure says that in 11 months of 2019, GEL 1.6 billion was spent on the infrastructure projects  that has been  the record high  since the country became  independent.

According to expert Zviad Khorguashvili, the budget of the Ministry of Infrastructure is growing as the October 2020 parliamentary elections are approaching and this way  the ruling party wants to  attract sympathy votes.

“The current infrastructure costs are excessive for Georgia as the country's economy is not strong enough to allocate such amounts. It’s worth mentioning  that most infrastructure projects are carried out on borrowed money. The country is in anticipation of the very important and very difficult parliamentary elections and all state structures are actively working to show the voters the results of infrastructure spending, ”the expert explains.

In Khorguashvili’s words, infrastructure works undoubtedly affect the economy’s development but temporary.

“The previous  government was criticized for excessive infrastructure projects but the current government  not only does not reduce, but increases these expenditures not for  economic purposes  but from a political point of view,” Zviad Khorguashvili notes.

Expert Gia Khukhashvili believes that large amounts  spent on the  infrastructure projects do not create sources of additional income.

"The Georgian government is proud of the rapid  economic growth, but in reality the economy is not growing and the figures  are achieved through infrastructure projects that  have a temporary effect. They do not create new sources of income and jobs, ” he says.

Khukhashvili adds that no one opposes  infrastructure projects, but they require  a large amounts of borrowed money that should be  paid out sometime.


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