Russia has revised its approach to calculating the level of poverty in the country. Relevant regulation appeared on the official Internet portal of legal information. It comes into force from the date of publication and applies to legal relations that arose from January 2021.
The resolution proposed to introduce a new concept in the country – “poverty line”. The poverty line will complement the already existing indicator of the subsistence minimum (SL). The new indicator is supposed to be calculated by multiplying the previous value of the PM for the quarter by the general inflation for the corresponding period.
According to the Ministry of Labor and Social Protection of Russia, the new indicator is introduced solely for statistical purposes and will not affect the size of state support measures for socially disadvantaged segments of the population. The press service of the department added that such an approach would make it possible to more accurately calculate the level of poverty among citizens.
“The poverty line will be used to assess progress in reducing poverty, and the cost of living – for social support purposes. The decision is vulnerable, but the only correct one possible “- commented on introduction of a new indicator to Kommersant, Vice-Rector of the Higher School of Economics Lilia Ovcharova.
Earlier, the Central Bank of Russia reported on the record value of the level of debt burden among Russian citizens. The ratio of expenses for payments on loans and disposable income of the population reached 10.24 percent.
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