2016-03-17
Under the chairmanship of Prime Minister Giorgi Kvirikashvili, the next session of the Cabinet was held at the Administration of Government. The Cabinet of Ministers discussed 33 issues placed on the agenda of the meeting.
Government has approved the plan of pension reform, which was presented by the Ministry of Economy. The government is working on the creation of private retirement savings system, which is developed by the government, experts, international organizations - the World Bank and the Asian Development Bank. While elaborating the scheme, country's experience and considerations of various government agencies were paid particular attention to.
The social pension system will be subjected to indexation, which implies setting up of a mechanism that will determine the amount by which pension shall be increased annually based on inflation rates. This will protect pensioners from inflation and avoid worsening of their purchasing power. It is important to ensure that the increase of social pension is in line with the inflation rates.
New component is also being introduced - the private accumulated saving plan is to be implemented. This reform will increase the potential pension of retirees.
Through the private savings system, long-lasting resource of Lari will be set up in the local market, thus ensuring de-dollarization of the economy and the capital market.
Within the framework of State Program "Produce in Georgia" two new plants are being established, - Government has approved allocation of funds for the construction of mineral products factory in the village Geguti of Tskaltubo municipality and innovative plant of wood processing in Lanchkhuti municipality.
In Lanchkhuti municipality, a fast-growing forest nursery will be planted on the land that has been transferred with long-term lease, which requires an investment in an amount of 2.5 million dollars; also, the company plans to build a wood processing factory that will employ innovative, environmentally friendly technologies to produce wood pellets.
"It's a new word in the economy and a very important project," - the Prime Minister stated. Based on the practical needs identified while implementing the hotel industry segment of the state program, relevant amendments will be introduced to "Produce in Georgia".
The amended provisions envisage lowering of the amount of minimum amount of loan from half a million GEL to 200 thousand GEL, while increasing the maximum limit to 2 million GEL.
The government also adopted a draft resolution, according to which, after 22 years of forced displacement, apartments will be provided free of charge to 126 families.
According to the decision, the Ministry of Culture will be provided with necessary funding for the purpose of promotion of tourism. Series of nationwide cultural events with the participation of foreign and Georgian top-class artists will be organized.
Ministry Agriculture submitted a draft resolution of on "Approval of Agricultural Insurance Program", which will allow individuals involved in agricultural activities to have access to insurance of the crop and avoid the risks of natural disasters. In addition, this document will bring the process of the development of agricultural insurance to the new level.
Prime Minister's Press Office