24.Apr .2020 18:39

Gov't announces 3.5 bln GEL anti-crisis plan - How the sum is distributed

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Georgia will spend 3.5 billion (about $1.10b/€1.02b) on its coronavirus anti-crisis plan, Georgian Prime Minister Giorgi Gakharia announced earlier today.

"For now, the country will spend 3.5 billion GEL on managing the crisis, of which 1.035 billion GEL will be directed at social support of citizens, 2.11 billion GEL will be directed at the economy and entrepreneurs, while 350 million GEL will be spent on the health care of each citizen", Gakharia said.

Support for people who have lost their jobs:

People who lost their jobs because of the coronavirus crisis or are on unpaid leave will receive 1,200 GEL (about $376.77/€349.37) over the course of six months, which is 200 GEL (about $62.79/€58.23) per month. This assistance will apply to 350,000 citizens of Georgia. A total of 460 million GEL (about $144.43m/€133.92m) is allocated from the budget.

Employer will receive a state subsidy for each maintained job:

• Over the course of six months, salaries up to 750 GEL (about $235.48/€218.35) will be fully exempt from income tax - the budget for which is 250 million GEL (about $78.49m/€72.78m).

• People employed in the informal sector or the self-employed will receive a one-time assistance of 300 GEL (about $94.19/€87.34) if they can substantiate claims of job loss – the budget for this is 75 million GEL (about $23.55m/€21.84m).

In six months, 600 GEL (about $188.38/€174.68) in assistance will be given to:

• Families with a rating score of 65,000 - 100,000. This will benefit about 70,000 families and 45 million GEL (about $14.13m/€13.10m) is allocated for it.

• Families with a rating score of 0 - 100,000 and have three and more children under the age 16. This will benefit about 21,000 families. The budget for this assistance is 13 million GEL (about $4.08m/€3.78m).

• Persons with severe disabilities and children with disabilities. About 40,000 citizens will benefit and 25 million GEL (about $7.85m/€7.28m) will be spent on this assistance.

Introduce the rule of indexation of pensions from January 2021:

• The annual increase in pensions will be higher than inflation
• Pension increase will not be less than 20 GEL, and for pensioners aged 70 and above less than 25 GEL
• Decision to increase pension by 30 GEL for retirees aged 70 and above from July 1 remains in force
• About 410,000 pensioners will benefit from this initiative

Financial assistance will be transferred from May, said Gakharia.