## Georgia: Technical Assistance Report-Enhancing the Fiscal Rules

_IMF Staff Country Reports, June 1, 2018_

## Source details

**Canonical URL:** [Georgia: Technical Assistance Report-Enhancing the Fiscal Rules](https://www.imf.org/en/publications/cr/issues/2018/06/01/georgia-technical-assistance-report-enhancing-the-fiscal-rules-45911)

## Other formats

- [Markdown version](/en/publications/cr/issues/2018/06/01/georgia-technical-assistance-report-enhancing-the-fiscal-rules-45911/index.md)
- [Structured JSON version](/en/publications/cr/issues/2018/06/01/georgia-technical-assistance-report-enhancing-the-fiscal-rules-45911/index.json)
- [Bundle manifest](/en/publications/cr/issues/2018/06/01/georgia-technical-assistance-report-enhancing-the-fiscal-rules-45911/bundle-manifest.json)

## Bibliographic details
- Published: June 1, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484358207.002

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### Summary of report
- This Technical Assistance Report discusses the recommendations made by the IMF mission to assist Georgian authorities in enhancing country’s fiscal rules framework.
- Recommended that the fiscal rules should consider both the overall objectives and the economic context in which they are applied.
- In Georgia, considerations include:
  - the stated primary objective of fiscal sustainability;
  - the need for flexibility to respond to economic shocks;
  - the transitional nature of the Georgian economy;
  - the intension to gradually move toward the European Union fiscal governance framework.
- It is also recommended that the fiscal policy targets should factor in potential economic shocks and fiscal risks.

### Key findings and analytical emphasis
- Fiscal rules design should reconcile:
  - objective of fiscal sustainability; and
  - requirement for flexibility to respond to shocks.
- Context-specific features for Georgia emphasized:
  - transitional economy dynamics; and
  - alignment and gradual convergence with the European Union fiscal governance framework.
- Fiscal policy targets must explicitly incorporate potential economic shocks and fiscal risks.

### Policy recommendations (as presented)
- Design fiscal rules that reflect both:
  - overall fiscal objectives (primary objective: fiscal sustainability); and
  - the economic context in which rules operate (including transitional economy status and EU convergence plans).
- Ensure fiscal targets and rules provide sufficient flexibility to respond to economic shocks.
- Factor potential fiscal risks into fiscal policy targets.

### Subject areas and keywords
- Subject: Budget planning and preparation; Expenditure; Fiscal policy; Fiscal risks; Fiscal rules; Public debt; Public financial management (PFM); Public investment and public-private partnerships (PPP)
- Keywords: Budget planning and preparation; CR; debt ceiling; deficit; deficit rule; expenditures rule; financial asset; Fiscal risks; fiscal rule; Fiscal rules; Global; ISCR; real GDP; rules framework; SOEs.

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2018/cr18132.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2018/cr18132.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2018/06/01/georgia-technical-assistance-report-enhancing-the-fiscal-rules-45911_