Georgian Prime Minister Irakli Kobakhidze announced that government-led optimization efforts across state-owned enterprises and ministries have saved the country more than 700 million GEL this year.
He emphasized that efficient use of public funds is essential for supporting economic growth and highlighted that significant steps had been taken in recent months, particularly in enterprises under the Ministry of Economy.
According to Kobakhidze, almost all major state-owned companies saw leadership changes as part of the reforms, enabling more effective cost-cutting measures. Savings were especially notable in the energy sector, where over 300 million GEL was saved. Staff reductions alone resulted in annual savings of 22.6 million GEL, while cuts in procurement and service expenses generated an additional 348.6 million GEL. Kobakhidze said these measures demonstrate how proper management and personnel decisions can significantly improve cost efficiency.
Beyond state enterprises, optimization also extended to government ministries.
Reorganization in the Ministry of Foreign Affairs saved over 2.6 million GEL, while changes in the Ministry of Defense cut 6.4 million GEL in costs. The Government Administration itself saved another 2 million GEL. Kobakhidze further noted that the elimination of paid adviser positions across all public institutions and enterprises has delivered additional multimillion savings, ensuring that funds previously used for high salaries with limited output are now redirected to more productive areas.
The Prime Minister underlined that the funds saved will be reinvested into projects designed to accelerate Georgia’s economic growth, stressing that efficiency reforms will not weaken ministries or enterprises but instead enhance their effectiveness.
