Finance Minister Says Pension Increase to GEL 400 Unrealistic

Ivane Machavariani, Georgia’s Finance Minister says that it is unrealistic to speak about the increase of the state pension from GEL 180 to GEL 400, adding such changes need a long-term reform.

Machavariani made the statement at the parliament on November 13, while speaking about the draft budget project of the next year.

The minister criticized the pre-election promise of presidential candidate of the United Opposition, Grigol Vashadze, that the state pension will be increased up to 400 GEL if he wins.

Machavariani also spoke about the increase of the state pension up to GEL 200, which will start from January 2019, saying he knows it is not enough.

“The pension increase should not take place before the elections. It should happen after implementation of long-term changes,” he responded to the United National Movement (UNM) MP, Roman Gotsiridz, who had highlighted during the discussion that Georgian Dream had decided to increase the pension this year, when the country is electing a new president.

During the pre-election campaign, Grigol Vashadze many times mentioned his plans for economic prosperity by lessening bureaucracy in the public sector. He believes reducing costs could enable an increase in the monthly pensions allowance to 400 GEL and teachers’ salaries to 1000 GEL.

Deputy Finance Minister of Georgia, Giorgi Kakauridze, also made a comment regarding the pension several days ago, saying that even if all state agencies were abolished, there would still not be enough funds in the state budget to increase the pension to 400 GEL.

By Thea Morrison