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4.2. SOCIAL SPHERE
4.2.3 Adjustment of the Population Monetary
Incomes
To create a new income level and structure,
when
implementing measures to stabilise the situation in the
region, a gradual transition must be made to new ways of
working out the minimum consumer budget. At the same time
the prerequisites for a regional system of people's monetary
income adjustment are determined.
Different approaches have
been proposed on the formation of
a new consumer basket. Recommendations on ways of
calculating the subsistence minimum have been drafted to
solve this problem. They are based on a phased transition
to
a new way of drafting the minimum consumer budget, based
on
the iteration method, which takes into account the
disintegration of the state social security system and the
appearance of new ways of satisfying the people's basic
needs.
Problems
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Changes in the social security system, above
all its
financing, are primarily reflected in the population
expenditure structure. Rising prices for basic consumer
products increase related purchasing costs and their
respective share in current cash expenditure. Increases
in
rent and utility charges also influence the expenditure
structure. The same phenomenon has been witnessed in the
paid services sector. This causes the problem of priority
payments.
At the same time new expenses appear, such
as payment for
health care, education and social service. The transition
to
paid services in terms of public expenses envisages a
qualitatively new structure of family budget expenditure
and
a fundamentally new consumer basket structure to calculate
the subsistence minimum.
Under the old distribution system, the consumer
basket
included above all foodstuffs and consumer goods. Paid
services and housing expenses represented only a small share
of the total. Medical services, education, rent etc. were
paid from the state budget via a system of subsidies or
provided free of charge, consequently the minimum wage was
based only on goods purchased by the general public for
money.
The old way of formulating people's monetary
incomes and the
different levels has so far been maintained. The resources
used to satisfy individual requirements have not been
redistributed between the state (which accumulated the
resources and virtually disposed of them independently)
and
the population as immediate consumers, at least not on a
federal level.
The local authorities are obliged to do
so independently, as
far as their competence permits. This is linked to the
implementation of several tasks.
1. The adaptation of the region's financial
system to high
inflation presupposes a staged transition of subsidies for
diet staples, transport, housing and utilities, etc. from
the local budget to people's incomes. In each case it
requires a specific measure and mechanism of distribution
of
subsidies between the region's residents.
2. The need to convert the social infrastructure
and exempt
the enterprises from expenses envisages a transition of
respective projects and their maintenance resources directly
to the consumers.
3. A new way of satisfying the population's
basic needs
involves a transition to various types of insurance
(medical, pension, etc.) The distribution of these forms
will influence the level and structure of the population's
monetary incomes.
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