Lasha Khutsishvili: We should try to increase pensions more rapidly, but there are limits – we could cut capital expenditure to increase pension spending, but then we would have neither economic growth nor higher pensions

“We should make every possible effort to increase pensions faster than they are currently growing, but there are certain limits. We could cut capital expenditure by even the GEL 2.5 billion that you say should be allocated to increasing pension spending. However, I assure you that within a maximum of one or two years, we would have neither economic growth nor the higher pensions that have been steadily increasing in recent years,” Georgian Finance Minister Lasha Khutsishvili said.

He made the remarks during a plenary session of Parliament in response to a question about pension increases.

According to Khutsishvili, the government is making every effort to increase pensions.

“We should make every possible effort to increase pensions faster than they are currently growing, but there are certain limits. We could cut capital expenditure by even the GEL 2.5 billion that you say should be allocated to increasing pension spending. However, I assure you that within a maximum of one or two years, we would have neither economic growth nor the higher pensions that have been steadily increasing in recent years.

“It is important to maintain an appropriate balance between social and capital expenditure in the state budget so that we can preserve the prospect of continuously increasing pensions and social and healthcare spending.

“The Georgian Government and the authorities are making every possible effort to increase pensions. However, there is a limit, as we must, on the one hand, maintain a balance between economic growth and social spending, while also preserving capital expenditure, which is a driving force behind economic growth, to ensure that future generations retain the greatest possible development opportunities,” Lasha Khutsishvili said.