Summary. The paper outlines the socio-economic challenges of the Covid-19 pandemic and ways to overcome it in the world and in Georgia. The growing role of the public sector and the importance of its separate functions such as ensuring macroeconomic stability, supporting the population and businesses, and stimulating the effective operation of the health care system are discussed. It is noted that the pandemic has made relevant the formation and implementation of policies aimed at challenging the public sector and solving relevant problems. This policy, with the involvement of relevant institutional actors, should contribute to the long-term sustainability of the society.

Keywords: Socio-Economic Challenges of Pandemic Covid-19, Public Sector Functions, Long-Term Sustainability of Society.