Georgia

This Technical Assistance Report discusses the recommendations made by the IMF mission to assist Georgian authorities in enhancing the country’s fiscal rules framework. The report recommends that the fiscal rules consider both the overall objectives and the economic context in which they are applied. In Georgia, this would include the stated primary objective of fiscal sustainability as well as the need for flexibility to respond to economic shocks, the transitional nature of the Georgian economy, and the intention to gradually move toward the EU fiscal governance framework. The fiscal policy targets should factor in potential economic shocks and fiscal risks.