Whilst speaking about the funding for the free canteens on air on Rustavi 2, Tbilisi City Council member, Sevdia Ugrekhelidze, stated: "The same amount of money was allocated for food for our homeless people during the time of our office (when the United National Movement was in power); however, when we were in office, this money was equal to 69 cents whilst now it is only 48 cents. Hence, there is already a 50 tetri

difference. If we transfer this into GEL, it is clear that the quality of nutrition will decrease."

According to the 2016 Tbilisi City budget project, a total of GEL 14.3 million was allocated for the funding of free canteens. According to the already adopted budget, the funding increased to GEL 14.47 million whilst the daily spending for one person has not changed and remained within the limits of GEL 1.18. Information about the money allocated for the same purposes from 2012 to 2015 can be found in Table 1.

Table 1:

Money Allocated for Food in Free Canteens from 2012 to 2015

Year	2012	2013	2014	2015
Planned Funding (GEL Thousand)	6,648.6	8,510.4	10,495.6	13,832.6
Number of Beneficiaries	15,338	23,224	27,745	31,320
Daily Amount of Money for One Person (GEL)	1.188	1.004	1.036	1.210

Source: Tbilisi Municipality Budget Project

The Georgian Dream coalition obtained the majority of the mandates in Tbilisi City Council at the beginning of 2013. Hence, the budgets for 2012 and 2013 were adopted when the United National Movement held the majority of the seats. The amount of money allocated for the daily funding of food for one person in 2012 and 2013 was GEL 1.188 and GEL 1.004, respectively, whilst according to the data of 2016 this amount is GEL 1.18.

Assessing the difference between the purchasing power of money during different periods based upon exchange rate changes is not correct. It would only be correct to use exchange rates for analysis if the distributed money were being spent in a foreign currency. In the case of the free canteens, however, this money is spent in Georgia’s national currency. The consumer price index is used for assessing changes in the purchasing power of money over time. Table 2 reflects the consumer price index and annual inflation from 2012 to 2015.

Table 2: 

Consumer Price Index and Annual Inflation from 2012 to 2015

Year	2012	2013	2014	2015*
Consumer Price Index	99.1	99.5	103.1	106.3
Annual Inflation	-0.9	-0.5	3.1	6.3

Source: National Statistics Office of Georgia

Taking the inflation level into account, the purchasing power of GEL 1.18 in 2016 would be equal to GEL 1.3 in 2012. Hence, one would need GEL 1.3 today to purchase goods costing GEL 1.18. Taking the purchasing power of money into account, we can say that the daily funding for one person has decreased by 12 tetri

as compared to 2012. Given the expected inflation rate (5%), this difference will increase even further by the end of 2016.

Conclusion The money allocated for funding the daily meals for one person in free canteens was equal to GEL 1.18 in 2012 and 2016. Taking the inflation rate into account, the purchasing power of GEL in 2016 differs from that of 2012 by 12 tetri.

This difference is expected to increase by the end of 2016.

The difference stated by the Tbilisi City Council member is excessive. The approach upon which the numbers are based is also incorrect. Hence, FactCheck concludes that Sevdia Ugrekhelidze’s statement is MOSTLY FALSE.