The FINANCIAL — The amount of Georgia’s state budget allocated for its health and social systems in 2013 is 32%.
The monthly pension amount in the country is GEL 150, the minimum subsistence amount per person. With this rate Georgia is ahead of its neighbour Armenia, but behind Azerbaijan where the average pension is twice as much.
Pensioners in the country complain that while having to spend on average more than 30% of their pension on medication the rest of the amount is not enough even to cover their monthly food costs, far less all their other living expenses.
The State Budget will be increased by GEL 355 million in 2014 to guarantee the realization of all ongoing projects, the new government has promised.
The share of the budget that is spent on the Ministry of Labour, Health and Social Affairs is the largest in comparison with all the other sectors. The amount is GEL 2.345 billion, and nearly 70% out of this financing is allocated for pensions.
“Georgia’s State Budget is set to increase by GEL 355 million in 2014,” David Sergeenko, the Minister of Labour, Health and Social Affairs of Georgia, told The FINANCIAL.
“The decision was made to guarantee the continued realization of all ongoing projects, including the growth of pensions and social assistance, and establishing general insurance, implemented in 2013,” said Sergeenko.
“A further increase of pensions in not planned for 2014,” he added.
Pensions have risen from GEL 125 to GEL 150 since September 2013. The minimum monthly subsistence amount per capita in Georgia is GEL 146.1.
According to GeoStat the local consumer basket is made up of 288 products. The percentages of products and services in this basket are as follows: 30.7% on foodstuffs and non-alcoholic beverages; 8.8% on utilities (gas, electricity and water); 9.0% on healthcare; 12.7% on transport; 4.6% on education and 5.2% on visits to restaurants and cafes. Portions of products and services included in the consumer basket cannot fully satisfy a person’s needs because they are not properly distributed.
“In one month I need GEL 30 for medicines alone, my pension in not enough to cover food products and public utility costs because everything is so expensive,” said Neli Purtseladze, pensioner in Tbilisi.
“My wife and I need GEL 70-80 a month for medicines; the public insurance doesn’t cover the cost of our medicines and visits to doctors,” said Joni Janashia, 76 year old pensioner in Tbilisi. “GEL 150 is not even enough for food, the prices of some everyday products have also increased.”
21% of the state budget is spent on pensions. The average pension in Armenia is AMD 31,300 (GEL 127). Armenia is currently considering increasing its pension by 15% in 2014. The minimum consumer basket in Armenia is AMD 53,804 (GEL 219).
The cost of living in Azerbaijan is much higher than in Georgia. The average cost of utilities for an 85 square metre apartment is GEL 173.29. Meanwhile in Georgia it is GEL 119.73. The subsistence minimum for pensioners is AZN 94 (GEL 198.65) according to APA. Meanwhile the pension is AZN 151-167 (GEL 320-354), twice as much as in Georgia.
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