ACT Global publishes results of study on the assessment of existing capital budgeting and public investment management (PIM) practices in Georgia.
The existence of an effective system for assessing investment (capital) projects is recognized as an important basis for public finance management and economic development, since it is through these systems that the country’s strategic goals are translated into specific, result-oriented investments and, thus, policy priorities are linked to evidence-based decisions. For Georgia, where the needs for infrastructural and municipal development are high and budgetary resources are limited, the institutional and practical strengthening of PIM is of particular importance.
The purpose of the study was to assess the current practice of capital budgeting and assessment of state investment projects in Georgia - achievements and challenges. The first part of the study is devoted to the analysis of world experience and a review of best practices in the direction of state investment management. The second part of the study presents the national legislative and policy framework in Georgia regarding the management of capital projects; it also analyzes the assessments of a number of national agencies and international organizations regarding the practice of investment / capital projects in Georgia. The third part of the study is devoted to a detailed analysis of the practice of capital budgeting and assessment of investment projects for the state budget in Georgia from the beginning of the reforms implemented in these directions to the present day.
Finally, based on the conducted study, the main conclusions and recommendations are presented. Capital budgeting and the PIM system in Georgia are largely regulated at the legislative and policy levels, however, their effective implementation, practical performance and functioning need to be improved, which is a necessary prerequisite for transforming state resources into real public value and ensuring sustainable economic development.
See the full version of the study below.
