WAITING FOR PENSION CHANGES

The Georgian Dream party won the 2012 parliamentary elections. One of their promises to voters was that  any  pension  increase would match any increase in the consumer price index,  so pensioners would at least receive enough money to meet  their needs, as measured by a collection of prices called the minimum consumer basket. So that  to identify pensioner's condition is  getting better  or worse, illustrate  the comparison based on the latest 5  years data.

 

According to the latest 5 years  data from official webpage (geostat.ge)of The National Statistics Office the subsistence minimum changed  like this 

 

The National Statistics Office calculates the minimum consumer basket using a list of 40 food products, utility bills and transportation costs that was approved by the Ministry of Labor, Health and Social Affairs on May, 8, 2003.  Till them, despite the election   promise of  Georgian Dream the items on the list haven’t changed..

 

According these chart during the latest five years subsistence minimum is higher than pension

According to the World Bank as more is provision share in the consumer basket ,the poorer is country. For Georgians majority of the subsistence minimum spend for provision

But  costs  are different for the pensioners.According to the , the Ministry of health Labor and Social Affairs published official  report  .In this  report  pointed out  that “for pensioners  heavy burden is buying medicines, which  costs have been continuously  increasing 

Also according to this report, pensioners spend the majority of their pension for medicines. During the five  years this variables  changed 47%-60%.

Dependence  between pension and subsistence minimum is negative. Due to the medicines prices  increasing pensioners left less  money  for provision costs.

To sum up, situation  for pensioners  gets  worse. Till  this  time election promise of 2012 year  hasn't performed and stayed only "promise"

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