The IMF advises government to confirm annual consolidated fiscal reports by independent review, – Fiscal Transparency Assessment report for Georgia prepared by The Foreign Monetary Fund (IMF) notes.
Georgia has taken important actions to enhance fiscal visibility over the past decade. Financial reports have become more comprehensive and timely, fiscal forecasts in addition to budgets have become much more forward-looking and policy-orientated, and disclosure involving fiscal risks has got improved substantially.
At one time, the evaluation best parts several areas where Georgias financial transparency practices may be further improved. For example: fiscal reports as well as statistics do not present you with a complete picture of basic government activity; middle government annual consolidated financial statements are not susceptible to independent audit; there is no reporting on conformity with fiscal protocols; and mechanisms so that you can mitigate fiscal risks related to public companies and power-purchase agreements will not be yet fully developed. Yet, the IMF notes that will efforts are underway to take care of these and other deficiency.
- Key recommendations of this report to strengthen fiscal visibility further include:
- Expanding a policy of the key money reports and the govt finance statistics to consolidate the own-funded routines of legal organisations of public regulation;
- Producing annual consolidated common government sector economic reports and boosting the accuracy and coverage of balance page information;
- Subjecting the yearly consolidated central governing administration financial statements to self-sufficient audit as soon as feasible;
- Publishing information on the sales revenue foregone by tax charges;
- Reviewing the fiscal regulations and regularly reporting regarding compliance with people rules;
- Providing more explanation of the macroeconomic forecasts together with reconciling new macroeconomic and fiscal forecasts together with prior forecasts;
- Tightening the criteria for drawing on resources contingency provisions; and
- Strengthening controls on lending and also equity injections to public corporations together with placing limits regarding liabilities from open public private partnerships.
The Georgian specialists welcomed the reports collected information and its publication. This implementation of vehicles planned by the respective authorities, and recommended in such a report, will result in even further improvements in money transparency in Georgia in the coming years.
Reflecting these types of efforts, the document found that many parts of sound fiscal openness practices are in place around Georgia. Assessed up against the standards of the Financial Transparency Code, the report found that Ga meets the good or advanced level exercise on 18 associated with 36 principles, and also the basic standard over a further 10 standards.