Greetings!

You are aware that the Government of Georgia has submitted the 2012 budget to the Parliament.

Our budget is oriented on development and economic growth despite the current economic downturn in the rest of the world. The European zone is in an economic crisis, which has a negative impact on the trade relationships of Georgia, and signs of economic hardship are noticeable in our area as well.

We have the experience of 2008-2009, when Georgia was developing even during the world economic crisis at that time.

Georgia has a very optimistic attitude despite the global economic situation.

We have increased the economic indicator to 7% this year, while all of the other countries have decreased it.

The inflation rate is at 3 %, which of course will be balanced out by the end of the year. This is a lot lower in comparison to the two-digit indicator that some predicted at the beginning of the year.

This does not mean that prices haven’t increased – the increase in costs of primary utility items was noticeable, especially during the spring. However, the general inflation indicator of the year is a lot lower than the economic growth, which means a positive economic process.

When we say that we are oriented on development, it means that next year, new large projects – new cities, resorts and revolutionary transport communications will be created and spread throughout the entire country.

Next year the construction of large hydro electric power stations in Georgia will begin. Neskra, Khudon, Namakhvani, and other hydro electric projects will be activated.

Next year is the year for new, large infrastructure development.

Next year we will implement a new project; the building of a new resort in Svaneti with the French, on Tetnuldi. The cost of this project is about 70 million GEL. We are also creating new infrastructure for Kakheti and we have outstanding projects planned for this region next year. This is very important and necessary for Kakheti and for all of Georgia.

The next part of the project is related to the rebuilding of Borjomi and here too we have large and very serious projects planned.

What we are going to do in Akhaltsikhe will be the biggest surprise for our people.

We also have to complete the projects that we’ve started: Anaklia of course, Adjara – including the mountain ski resort on Goderdzi pass. All of this will be implemented in the direction of Javakheti, along with the construction of the Goderdzi road.

We will also continue to work on other infrastructural projects.

Next year we will be in the last stage of planning of the new Stepantsminda tunnel, which will become a shortcut from Stepantsminda to Tbilisi.

We are also planning the construction of tunnels and roads in Svaneti and other regions, in places where no one had imagined that it was possible to shorten roads by 2-3 times.

So, we have planned the budget not in order to keep what we have but in order to develop further.

Next year’s budget envisions increasing pensions even more. Development of an insurance system will continue as well (especially insurance for the socially unprotected).

Also, huge projects will be implemented in terms of healthcare in order for us to have a modern hospital structure.

Kutaisi is the largest project of next year. We have all agreed that we are going to hold the first session in the new Parliament building in Kutaisi on May 26, after which the entire Parliament will move to Kutaisi.

We are going to open a new government building in Kutaisi in several days, which is a little smaller than the government chancellery. In terms of convenience and its functions, it is larger than any other existing governmental building in Georgia.

These are our plans.

Second issue – the economic situation is extremely hard in our neighborhood and it is caused not by objective but rather subjective factors. In Russia and other countries the scale of corruption is huge, as well as injustice and lack of prospects. This is the time for Georgia to be active in terms of attracting investments.

I do not wish to say that we should seek wealth based on the hardship of others, but we should all work in order to attract capital freed from other countries. Especially at a time when there is no corruption, there is a good investment climate, a high level of security, not to mention the fact that Georgia is a tourism paradise and none of the other countries can compare in this aspect. At this time, Georgia has a chance to increase its economic potential with the capital that has “escaped” other countries.

It is also important to train our people well by creating new technical schools. We should also continue working towards developing a Technical University as well as use the existing universities.

For example, there are very interesting new directions at the Georgian Technical University and other schools…

It is imperative to massively broaden the knowledge of foreign languages, especially English.

Aside from the investment environment, government policies and low taxes it is important to have local qualified specialists.

We can do this very quickly, because we have very talented people and based on the experience of recent years, we know that people of every age can be re-trained.

Not only do we need people of the ages 20-23, but we need people of all ages, including 40-55, who should be trained so they can adjust to the demands of the modern market.

We should prepare for attracting investments from neighboring countries to Georgia.