4.2. SOCIAL SPHERE
4.2.3 Adjustment of the Population Monetary
Incomes
Decisions
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The formation of a new income level and
structure of incomes
during the implementation of measures to stabilise the
situation in the region, presupposes a gradual transition
to
new ways of working out the minimum consumer budget and
creates the prerequisites for a partial indexation of the
population's monetary incomes. Each of the aforementioned
measures is worked out separately and taken into account
when the subsistence minimum is calculated.
The introduction of indexation requires
several conditions:
a) a reliable inflation indicator. A consumer
price index calculated by the regional statistics bureau
can be used as such an indicator. On the whole the CPI calculating
method used in the republic meets standard requirements.
It can be specified, in accordance with offered recommendations
on methods which will be cited below;
b) the subsistence minimum of the Nizhni
Novgorod Oblast
population has to be calculated to substantiate minimum
monetary incomes (wages, pensions and allowances). These
calculations are being made. Current methods should be
complemented to specify calculation methods, as the monetary
income adjustment system is introduced;
c) as the minimum level of some payments
does not correspond
to the calculated subsistence minimum, a crisis threshold
should be determined: the correlation between the monetary
income and the subsistence minimum should not fall below
this level. In the region this threshold has been defined
at
80 per cent.
d) the emergence of new sources of income
(second jobs,
individual enterprise, etc.) means that personal income
declarations must be drafted and introduced.
In addition, the introduction of the indexation system is
the federal government's prerogative and provides for the
existence of a normative basis and permanent sources of
financing. The local bodies can specify the offered
mechanism, proceeding from the financial resources at their
disposal and social policy priorities.
Proceeding from aforementioned facts, in
the near future we
can speak about the regional income adjustment system with
great certainty, including price rises. Employees' monetary
income adjustment will be introduced at the expense of local
sources, if their average monthly income constitutes 80%
or
less of the subsistence minimum. Payments are also envisaged
for pensioners, whose pensions are lower than the
subsistence minimum.
Given existing technical facilities for
recalculating
people's monetary incomes, local subsidies and compensations
to employees can be paid at their place of work or education
within five to seven days of a decision and to pensioners,
in the next month after the decision, together with their
pension. In future, once a computerised social insurance
network devised specially for the region starts operating,
and small businesses have been set up to provide pensions
and benefits, payments will be made within ten days of the
decision.
These payments cannot be called indexation.
Orientation to
the poorest population groups gives one grounds for
considering them as a social support system.
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