State investments play a significant role in the economic development of small and transition-type countries such as Georgia. They perform a stimulatory function within the framework of state fiscal policy, exerting a positive impact on business development, job creation, the growth of budgetary revenues, and GDP expansion. Attracting investments to individual territorial units of the country is associated with substantial difficulties. Therefore, public infrastructure investments assume a particularly important role in shaping the investment environment (climate) and in fostering business development in regions and territorial units. For this purpose, in recent decades the state has appropriately employed the well-established principle of outsourcing. This, in turn, contributes to the formation of added value in territorial units, the creation of employment opportunities, and the growth of budgetary revenues, which positively affects their socio-economic development and the improvement of the population’s standard and quality of living.
The paper examines and analyzes the key aspects that determine the role of public infrastructure investments, including in the territorial dimension (municipalities of Georgia). The main challenges are identified, and, based on the research, generalized conclusions and recommendations are formulated.
The authors argue that the selection and prioritization of state investments should be realistic and aligned with territorial development strategies. In the implementation of public investments, it is necessary to take into account competitiveness, sustainable development, innovativeness, job creation potential, equity, and environmental protection considerations. Given the importance of infrastructure investments, it becomes necessary to introduce appropriate amendments to budgetary legislation, ensure a clear delineation of competences between central, regional, and local authorities, and minimize duplication, thereby increasing efficiency.
The research primarily employs methods of comparative analysis and synthesis, statistical observation, a systems-based approach, and other analytical methods.
The informational base of the study consists of analytical materials and reports of the National Statistics Office of Georgia, as well as strategic documents, laws, and regulatory acts; scholarly works published by Georgian and foreign authors; and the official websites of relevant ministries, agencies, and municipalities of Georgia.
