Georgian Economy Ministry candidate highlights “economic growth”, “social welfare improvements” ahead of Gov’t confidence vote

Lasha Khutsishvili, the ruling Georgian Dream party’s candidate for the Minister of Finance of the country, on Wednesday highlighted the Government's commitment to “fiscal discipline”, “economic growth” and “improvements in social welfare” in a parliamentary report ahead of the approval of the new Government following last month’s general elections.

The official presented “key priorities” for his office during a joint session of five parliamentary committees, with the confidence vote scheduled this week, the Ministry said. 

Khutsishvili assured MPs the fiscal discipline approach remained a “priority”, with the budget deficit planned to stay within the three percent limit required by the organic law.

Fiscal responsibility is key to our future economic stability, and we are committed to ensuring that the deficit does not exceed the three percent threshold”, he said and claimed the country’s economy had been “steadily growing”, with a “significant increase” in funding for social welfare and healthcare programmes. 

The official said more than ₾2.8 billion ($1.03 billion) had been allocated to the areas since 2021, and noted the figure represented 35 percent of the total budget increase
Khutsishvili pointed out that pensions for people aged under 70 had been raised by ₾75 GEL ($28), and those in mountainous areas had received a ₾90 ($33) increase. 

For pensioners aged 70 and above, pensions increased by ₾140 ($52), with a ₾168 ($62) increase in mountainous areas”, Khutsishvili said, adding the number of beneficiaries had grown by more than 65,000 people. 

“The increase in pensions and expansion of social programmes are part of our broader commitment to improving the welfare of Georgian citizens”, Khutsishvili said.

He further explained the social rating scale for children under 16 who receive assistance had expanded from 100,000 to 120,000, and the monthly assistance for each child had quadrupled to ₾200 ($74). 

This ensures that more children in need receive the support they deserve, and we are committed to continuing this expansion”, the ministerial candidate added. 

Khutsishvili further highlighted the Government’s “increased investment” in defense and security, which he said had grown by over ₾1.2 billion ($434 million), representing 15 percent of the overall budget increase.

He noted over ₾600 million ($221 million) of the increase had been allocated to improving social conditions of servicemembers and police officers, including a 45 percent rise in their salaries over the past three years.

We must ensure that those who serve in defence and law enforcement are adequately supported, and we are prioritising their welfare”, the official claimed. 

The candidate for the Finance Minister also addressed the Government's commitment to education, with an increase of more than ₾1.45 billion ($534 million) in education and science funding, representing 18 percent of the total budget increase. 

The funding for education will exceed ₾3.3 billion ($1.22 billion) this year, which marks an increase of over 70 percent. This allows us to raise the salaries of teachers and kindergarten staff, ensuring better compensation for those shaping the future of Georgia”, he said. 

Turning to infrastructure, Khutsishvili explained the Government was allocating over ₾7.8 billion ($3 billion) for infrastructure projects this year, which he said would focus on municipal infrastructure, road development, and water supply projects. 

We have already completed significant parts of major road projects such as the Rikoti Pass and the Batumi bypass, which are vital for improving transportation and connectivity in Georgia”, Khutsishvili said.

Khutsishvili projected that the fiscal deficit would average 2.5 percent of GDP from 2025 to 2028, gradually decreasing to 2.2 percent. 

The official assured that Georgia’s economy would continue to grow, with capital expenditures projected to maintain a “steady six to seven percent of GDP in the medium term”. 

Our financial strategies ensure sustainable growth while managing public debt at a safe level, with no more than 40 percent of GDP”, he said.

The official also discussed Georgia’s path to European Union membership, pledging the country’s commitment to EU-aligned reforms. 

As a candidate for EU membership, Georgia is preparing the 2024-2026 Economic Reform Programme, which will be submitted to the European Commission by January 15. This is part of our ongoing efforts to align with EU economic practices”, he added. 

Khutsishvili also highlighted the significance of Georgia's first sovereign loan in national currency from the Asian Development Bank, which he said had been approved last week to support the vocational education sector. 

This loan, provided in local currency, is a testament to the confidence international financial institutions have in Georgia’s economy”, he noted. 

Khutsishvili concluded by pledging the Government’s commitment to “improving budget transparency” and “continuing reforms” in accounting, reporting, and tax administration. 

Our goal is to ensure high-quality governance and create a competitive environment for business growth, both of which are essential for attracting investments”, he claimed. 

The official further noted the ultimate aim of the Government's economic policies was to improve Georgia’s sovereign rating and achieve an investment-grade credit rating, which he said would “help foster further economic stability and growth”.