The objective of this research is to evaluate Georgia’s fiscal policy regarding mineral resources, assess its impact on local municipalities, and determine whether the existing policy is consistent with the public interest and international standards.

In general, mineral resource policy integrates several directions across political, social, and economic segments, while fiscal policy represents one specific direction within the broader resource policy framework.

The policy related to mineral extraction can be divided into several components, namely:

• Development of strategies and institutions related to mineral resources.
• Implementation of accountability and transparency standards.
• Establishment of a licensing system.
• Development of taxation and royalty/fee policies.
• Management of local negative effects caused by mineral resource extraction.
• The role and involvement of state-owned companies in the use of mineral resources.
• Policy for the distribution of generated revenues.
• Management of revenue volatility (actual and expected).
• Policy for the expenditure of revenues derived from mineral resources.
• Development of the private sector.
• Involvement of international companies in mineral extraction.
• Policy on the engagement of international organizations.[1]

For the development of a sound and well-functioning mineral resources policy, it is important to address all of the above-mentioned areas in an integrated manner. However, within the scope of this study, only the analysis of taxation and fee policy (fiscal policy) will be undertaken. Fiscal policy represents a central element, as without ensuring that the country receives an adequate and fair share of revenues derived from mineral resources, the effectiveness of other areas cannot guarantee sustainable economic development.

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