MP Irakli Kovzanadze: We Need Rapid & Fundamental Reforms

We need rapid and fundamental reforms. One of such is the Pension System Reform,- noted MP Irakli Kovzanadze, Fiscal Committee Chair of the Parliament of Georgia, at a public-private sector dialogue held at the Parliament of Georgia. The key topic of the discussion was a Draft Law of Georgia on the Savings Pension: Advantages and Challenges.

As noted by MP Kovzanadze, the bulk of the State Budget (almost 45%) is social spending, but pensioners are still the most vulnerable group of society. According to him, the current monthly pension (180 GEL) is far from sufficient to ensure a decent lifestyle. The Fiscal Committee Chair believes that the incremental increase of pensions by 10, 20 or even 60 GEL will not solve the problem in the long-run. Hence, he says, it is essential that “fundamental changes are made towards this end.”

“We need rapid and fundamental reforms in various directions to let the economy of Georgia develop and grow, respond to modern challenges and become competitive. One such direction is the Pension Reform and, namely, I have in mind the introduction of a Savings Pension Model. It is an internationally practiced method, which implies co-participation of the employer, employee and the State, i.e. contributions and united responsibility of the three parties” he added.