Expert Bakhtishod Khamidov's comments on the minimum consumer spending

- The Ministry of Economic Development and Poverty Reduction has set a minimum consumption expenditure of 440,000 soums. What are the positive aspects of these numbers for the border line income group?

- MCS only refers to the low income group. This figure was formed only as a result of the study of the lowest income group, not for all level of the population. For the rich and middle class, this amount may seem small, but for the poor class, it needs to be studied separately. People who have access to the Internet, especially those living in Tashkent with a relatively high level of well-being, may be talking about themselves. The fact that even the poorest 30 percent of the population who live in rural areas in the provinces may not be involved in such debates due to problems with the internet. Now it is difficult for us to hear their opinions. The main purpose of the formation of the MCS is also to fight poverty and and help families who earn less than the minimum wage of 440 thousand soums.

- How does the announcement of MCS affect the daily lives of the population? Will a clear program be developed by the government? Simply, how will the announcement of these numbers change the lives of the poor?

First of all, we need to understand the underlying issues that are currently being raised. The announcement of a limit of 440,000 soums in the next period will serve as a basis for the government in the fight against poverty. Based on this amount, the pensions and social benefits will be reconsidered, as these measures are the main procedures to reduce poverty. Things like that had to be determined by the state based on something. After that, the pensions are determined based on the MCS.

This amount is also important in preventing a sharp rise in prices. For example, in daily life of the population, vegetable oil is consumed every day. The sharp rise in oil prices had a serious impact on the lives of ordinary citizens. Now this level formed a list of basic products that they consume on a daily basis, measures are being taken to prevent sharp fluctuations in the prices of these products. Moreover, MCS will also be used in other directions.

-According to statistics, the number of families receiving social assistance from the state has doubled by 2020. Is the state budget ready for large social expenditures?

- Of course, we are all interested in reducing these numbers. We are all in favor of the population getting out of the poverty.

In some cases, it has been concluded that the number of retirees should be increased in the first place in order to reduce these numbers. The reason is that the cases related to the corona crisis have plagued many people. According to the World Bank, hundreds of thousands of people around the world have reached the brink of poverty. They lost their source of income, took some time to recover, and went into debt. In such a situation, if the state does not support the population financially, the population will fall into the trap of poverty. Because they are now in debt and pay the money they earned, they don’t eat well, which leads to loss of health. As a result, they cannot pay attention to their children, their children do not get the right education and they cannot go to school on time. This trend continues to have negative consequences linked through a chain in the lives of the population. The population falls into the trap of poverty.

Therefore, work has recently been done to increase the number of social pensioners and their number has been increased. The main purpose of this is to help people to get out of poverty. The population should not think that the State is collecting taxes and distributing them to the poor, which is being done in the coming years to achieve efficiency.

When does the announced MCS amount of 440,000 soums be reconsidered?

Inflation in the food sector is high. Are these aspects also taken into account?

- You are right, these numbers should vary depending on our current economic situation. If you go to Europe, you can see that price changes will be slower there, but we have a much higher price level growth compared to developed countries. This means that we need to adjust prices over time.

I think these figures should be reconsidered and changed after the inflation rate is announced at the end of the year. Another way is to conduct a similar study every year, take the result and apply it. But this can be costly and time consuming. Conducting a survey of 10,000 people is also a challenge. In many countries, the amount of MCS is calculated every 5 years as a result of surveys and analyzes. The amount in 5 years will increase depending on the inflation rate.

Source: Kun.uz