According to the latest data released by the State Statistics Committee, the poorest section of the population is steadily diminishing. But the number of those Russians who live below the poverty still line remains high.
Those with incomes less than the minimum subsistence level in the 3rd quarter of 2002 decreased by 3.5 million people to 38.7 million, compared to 42.2 million in the 2nd quarter, the State Statistics Committee revealed on Sunday.
Thus, the share of population with incomes less than the subsistence minimum in the 3rd quarter fell to 27 per cent. It was 29.4 per cent in the 2nd quarter.
Over the past two years this index has only been lower in the 4th quarter of 2001. Then, according to the statistics agency, the section of the population that had incomes below the subsistence level amounted to 34.8 million (or 24 per cent of the total population).
The subsistence level in Russia in the 3rd quarter of 2002 totaled 1,817 roubles per month per capita. For able-bodied citizens it was defined at 1,980 roubles, for pensioners – at 1,387 roubles, for children – at 1,799 roubles. Those indices were determined by governmental decree No.793 of November 1.
As compared with the 2nd quarter of 2002, the subsistence minimum increased on average by 1 per cent. The figure in the 2nd quarter of 2002 amounted to 1,804 roubles per capita.
The average cost of the consumption basket in Russia in the 3rd quarter of 2002 amounted to 1,721 roubles, while expenses on compulsory payments and levies totaled 96 roubles. The cost of the minimum set of foodstuffs amounted to 847 roubles, nonfood items – 421 roubles, the minimum set of services – 453 roubles.
The cost of foodstuffs in the consumption budget decreased by 3 per cent compared to the 2nd quarter, the cost of the nonfood items grew by 2 per cent, the cost of services increased by 7 per cent.
It is worth noting that the average income of the population in the 3rd quarter of this year amounted to nearly 4,000 roubles.
The average pension is approximately the same as the subsistence level, and the average level of scholarships in the state-run institutes of higher education amounts to 10 per cent of the subsistence level.
In line with the State Statistics Committee report, to reach the minimum subsistence level a family of 2 able-bodied people must have an income of 3,960 roubles per month, 2 pensioners need 2,774 roubles per month, 1 able-bodied citizen with one child – 3,779 roubles, 2 able-bodied persons with 1 child – 5,759 roubles, and 2 able-bodied persons and 1 pensioner – 5,347 roubles.
As regards to the income level in Russia, one has to keep in mind that there is a considerable difference between the various groups of the population in terms of their income level. According to earlier data published by the State Statistics Committee, in the first six months of 2002, the richest 10 per cent of the population accounted for 32.9 per cent of total cash income, while the poorest 10 per cent earned just 2.3 per cent.
It is also worth noting that the Statistics Committee's report is based on official information about salaries and incomes. It is no secret that even despite the reduction of the income tax rate, many Russian enterprises continue to practice various shady salary schemes to dodge tax payments. This may mean that the real state of affairs could differ somewhat from the picture drawn by the State Statistics Committee.
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The minimum subsistence level is determined by the cost of the minimum set of goods and services necessary for the existence of an average household, as well as the compulsory payments. The subsistence minimum in the Russian Federation is set quarterly by the Russian government on the basis of data from the State Statistic Committee on the level of consumer prices for goods and services, as well as on expenses on compulsory payments and levies, included in the consumption basket.