The Statistics Agency under the President of Uzbekistan has announced updated minimum consumer expenditures (MCE) for the population. This indicator, used to determine the poverty line, has been increased by 4.3% — from 621 thousand to 648 thousand sums per person per month (from 20.7 thousand to 21.6 thousand sums per day).
According to the legislation, the agency announces the indicator by January 20. At the beginning of the year, the MCE was increased by 9.3% (to 621 thousand sums) against the official annual inflation of 8.7%. Subsequently, minimum pensions and allowances were raised to the level of the poverty line.
However, due to the increase in prices for electricity and gas (by a minimum of 52.5-71%), a decision was made to raise the poverty line once again starting from May 1.
Starting from 2022, the criterion of average per capita income per month, used in recognizing a family as low-income through the "Unified Register of Social Protection" information system, has been equated to the minimum consumer expenditures. Some allowances and other social norms must be paid no less than the MCE.
Minimum consumer expenditures take into account a person's daily needs for food and non-food products, as well as services. This method involves determining the basic expenses necessary to calculate a person's daily budget.
As noted by the Statistics Agency, in global practice, the minimum consumption indicator is used as a poverty line to:
- Identify the target group of the population in need of material and other social assistance from the state;
- Increase the efficiency and targeting of tasks and activities defined in poverty reduction strategies and programs, as well as conduct their constant monitoring;
- Serve as a criterion for determining the minimum size of pensions and allowances, as well as for providing other types of material assistance to low-income families.
In the Ministry of Energy, it was previously reported that when prepaying for gas and electricity before May 1, the old tariffs will remain valid for two months from the date of payment, but only within the social norm (up to 100 cubic meters and up to 200 kWh).
An analysis was done on how household expenses will increase with the introduction of new tariffs. Below is an infographic explaining the application process of the increased tariffs.
In the Social Protection Agency, it was previously stated that around 1.5 million needy families will receive assistance due to the tariff increases. In addition to raising the poverty line, pensions, and allowances, a one-time payment of 270 thousand sums during the heating season and compensations are provided.
