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Apr 7, 2021
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Cabinet considers new criterion for defining poverty

The government is considering a new criterion for determining poverty, said the head of the Accounts Chamber, Alexei Kudrin, during his speech to the State Duma.

According to him, this parameter takes into account the new procedure for determining the subsistence minimum, which came into force this year, RIA Novosti reports.

Kudrin added that the Accounts Chamber is not yet familiar with this criterion.

The auditors studied the measures taken to combat poverty and submitted their proposals to the Cabinet of Ministers. When determining poverty, the Accounts Chamber was guided by the amount of citizens’ incomes below the subsistence level.

Meanwhile, the deputies recalled that from this year the subsistence minimum in the country is calculated through the median salary and the coefficient to it.

According to Kudrin, the Accounts Chamber believes that this procedure makes it possible to define poverty. And the fact that it does not correlate at every moment in real time with the consumer basket is not a major drawback.

The head of the Accounts Chamber suggested that the cost of living, calculated according to the new rules, will grow faster, which will push employers to raise wages faster.

Recall that in 2021 the subsistence minimum was set at 11,653 rubles.

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