This paper investigates reasons ofGeorgian targeted social assistance (TSA)’s decliningperformance and presents a new proxy means test (PMT) modelestimated on the most recent household income andexpenditure survey data (2018). The paper finds that thepresented updated formula performs better in terms of itsranking property, coverage of the poor, and benefitincidence among the poor. The updated PMT formula willimprove the coverage of the poorest decile by raising itfrom 69 percent to 77 percent and the benefit incidence inthe poorest decile from 60 to 65 percent. The analysis alsofinds that most of the winners are in the poorest quintilewhile the losers in the top quintiles. In the medium term,the paper highlights the potential benefits of moving to ahybrid targeting approach, whereby reported income is usedas a first-stage exclusion criterion before a PMT assessment.