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Finance Minister announces pension increase

By Gvantsa Gabekhadze
Monday, November 6
Georgia’s Minister of Finance has announced at Parliament’s plenary session that in 2019 and 2020, pensions will increase in Georgia and this is not a “populist step.”

"I would like to make an important announcement about pensions. We made a decision to increase pensions will increase pensions by 20 GEL in 2019, as well as in 2020," said Kumsishvili.

The minister claimed that the government decided not to use this decision for populist purposes before the municipal elections held last month.

“Other important projects will also be carried out in the future. They will be very important reforms in which we need your support," Kumsishvili addressed lawmakers.

The Finance Minister underscored that the salaries of officials would not be increased until 2021.

"I know that their salaries will not be increased until 2021, meaning that they will have the same salaries in 2021 too. It will be possible only in 2021 to make changes in this direction,” Kumsishvili said.

The opposition stated that any increase in pensions or salaries loose meaning when the national currency is devaluating day by day, with 1 USD reaching 2.61 GEL.

The United National Movement opposition and several other parties believe that the Georgian Dream leadership has no will, plan or an ability to provide a genuine, positive breakthrough in the country’s economy.

The opposition also criticizes the government-offered accumulated pension model, which will allegedly come into play from 2018.

The model envisages cutting two percent from employed people’s untaxed monthly salaries and putting the money on pension accounts.

The government claims it will add the two percent with another two percent from taxed monthly salaries and also invest pension money to provide additional benefits.

Females will be able to use the accumulated money when they are 60 years old and males when they reach 65.

The opposition and some experts say the government may misuse the accumulated pensions.