Georgia Adopts Economic Liberty Act

The Parliament of Georgia adopted the Economic Liberty Act, which provides long-term upper limits (though the Government retains certain tactical short-term flexibility) for: (1) budget expenditure, which is capped at 30% of GDP; (2) the budget deficit, which is capped at 3% of GDP; and (3) public debt, which is capped at 60% of GDP. The Economic Liberty Act will enter into force in 2014. The new law complements the constitutional amendment adopted in December 2010 requiring a referendum in case the government decides to increase taxes (except excise and local taxes). “The Economic Liberty Act seeks to limit the discretion of the executive branch of government and ensures that the government remains small and limited and taxes remain (other than through the sovereign will of the people) low and flat,” commented Nika Gilauri, Prime Minister of Georgia.


http://www.civil.ge/eng/article.php?id=23691
http://www.government.gov.ge/files/34_32576_148262_GEORGIAADOPTSTHEECONOMICLIBERTYACT.pdf
http://pik.tv/en/news/story/economic-freedom-act-in-georgia (video)