Georgia not to increase military expenditures

In two nearest years Tbilisi intends to lure USD 3 bn from privatization, Finance  Minister Kakha Baindurashvili said.

Georgia managed to modernize its armed forces significantly with the assistance of the U.S., but the country was defeated in August 2008 war.

Though the volume of means for military purposes remains the same, their part in budget decreases [in percentage], ,the Minister explained.

According to Baindurashvili, in the nearest two years Tbilisi plans to receive USD 3 bn from selling rights to build a resort in Anaklia and the railway, implementation of projects in hydro energy and privatization of state property.

In 2009, the economy of Georgia decreased by 4 per cent, compared to 2.1 per cent growth in 2008.

Yet the decrease of capital inflow didn't strike as hard, due to aid of Western donors - USD 4.5 bn, allocated to 2012, for recovery after August war.

/Georgia Times/