The Increasing Trend of Social Program Expenditures in Georgia
Over the last five years, the government of Georgia has been steadily increasing its expenditures on social programs, reflecting its commitment to improving the living standards of its citizens. According to a recent study by PMCG, social program expenditures have increased from ₾3.3 billion to ₾6 billion, and the share of these expenses in the total budget has increased from 37% to 40%.
One of the key social programs in Georgia is the provision of subsistence allowances for vulnerable families. While there was a slight decrease in the number of families receiving these allowances in 2018-2019, the trend reversed from 2019-2022, with all regions experiencing an increase in the number of families receiving these allowances. Notably, the highest increase was observed in Adjara, with a growth of 8.3 percentage points.
Despite the overall increase in the number of families receiving allowances, there were significant regional variations. Racha-Lechkhumi and Kvemo Svaneti had the highest share of families receiving subsistence allowances, with an average of 44.2%, followed by Samegrelo-Zemo Svaneti (18.3%) and Shida Kartli (16.9%). The lowest share of families receiving allowances was recorded in Tbilisi (9.8%), Samtskhe-Javakheti (11%), and Imereti (11.6%).
The increase in social program expenditures has also led to an increase in the cost of living allowance, which rose from ₾251 million to ₾609 million in the analyzed period, with an average annual growth rate of 20%. However, it should be noted that the number of subsistence allowance recipients was lowest in 2019, despite the increase in living allowance costs by 27% compared to 2018.
The study also revealed that the average monthly subsistence allowance per family increased from ₾163 to ₾256 from 2018 to 2022, while the minimum subsistence allowance for an average family increased from ₾292 to ₾314. However, the average monthly subsistence minimum was still on average 51% higher than the average monthly subsistence allowance.
In conclusion, the increasing trend of social program expenditures in Georgia is a positive sign of the government's commitment to providing a better standard of living for its citizens. However, there is still much work to be done to ensure that the benefits of these programs are evenly distributed across all regions of the country.