"The needs criterion is incorrectly calculated" − Expert explains


It was announced that the minimum subsistence level and the needs criterion in Azerbaijan for next year will be 300 manat.
Yeniavaz.com reports that, since the current minimum subsistence level and the needs criterion in Azerbaijan are 285 manat, the increase is expected to be 5.3%.
Economist and expert Allahverdi Aydin, who spoke to Yeniavaz.com about this matter, asserts that the increase in the subsistence level and the needs criterion is not being implemented in accordance with legal requirements:
"Clause 1.0.2 of the Law on the Subsistence Minimum clearly states that the subsistence minimum is a social norm consisting of the cost of a minimum consumer basket and the amount of mandatory payments. Clause 1.0.1 of the same Law states that the minimum consumer basket is a set of food products, non-food goods, and services necessary for a minimum level of human health and functioning, determined based on scientific standards.
The law also makes it clear that any person living in Azerbaijan requires funds equivalent to the subsistence minimum to ensure their health and functioning at a minimum level. If the subsistence minimum in Azerbaijan was set at 285 manat this year, this means that at least the same amount is necessary for a person's minimum standard of living".
The expert notes that, according to the latest official data published this year, inflation in Azerbaijan was 5.7%:
"The inflation rate for food, alcoholic beverages, and tobacco products was higher – 7.9%. According to the Central Bank's latest forecast, inflation in the country is expected to reach 6% by the end of 2025. This also means that the cost of the consumer basket has increased or will increase by at least the same amount this year. In this case, the subsistence minimum should also be no less than the cost of the consumer basket, as this is a legal requirement. However, since the subsistence minimum has increased by 5.3%, and the need criterion is below the inflation rate, the legal requirement is not met."
The economist added that the incorrect calculation of the need criterion will directly impact the living standards of hundreds of thousands of people:
"As is well known, the need criterion is the main criterion used in calculating targeted social assistance. According to the latest data, more than 350,000 people in the country receive social assistance. Due to the incorrect calculation of the need criterion, people receive less social assistance."

Elnur Ali
 

OTHER NEWS

Top