In reality, Government will replenish budget gap from pocket of our citizens, Merab Janiashvili told Tavisufleba radio station.
“Potentially positive economic affects of Estonian Model have been neutralized. Just what does the Estonian Model imply? Government raises less finances from economy. Consequently, more funds are maintained in economy and economic activity grows using this method. As well as what has our government done? Government has stated to never collect 500 million after reinvestments, nonetheless it wants to raise twice more amount from economy. It is possible to effect of comparable decision? This is often nonsense.
Positive affect of Estonian Model is the fact that major entrepreneurs who is going to make reinvestments can make serious benefits and will not pay 15% tax, but small entrepreneurs who be based upon monthly revenues simply can’t afford to produce reinvestments. Therefore, Government has acted for major entrepreneurs, having collected funds from citizens and increased excise tax on oil products and tobacco products. What does this implies? Can we give more preferences to the rich and work out the indegent poorer?
When you establish Estonian model and expenditures shrink, you should cut expenditures and this component must be financed through external debts, because internal borrowings are withdrawn from economy. There’s no doubt that our government contains a certain inhibition of expanding state budget annually, whether or not revenues decline. State budget expansion doesn’t mean revenues also grow.
When Government grows fuel tariffs, it is a radical step, much more decision raises prices on other products too. What justifies excise tax growth on oil products? Oil products non-manufacturer countries attempt to lower taxes to help make fuel cheaper. I cannot know whether Government wants vehicles for being affordable for only state officials. This decision will genuinely reduce fuel consumption, because higher fuel tariffs will make taxi and minivan taxi run more costly. Therefore, I do not know why Government has gotten this decision”, Merab Janiashvili said.