According to the proposed regulation, households in rural areas with an average per person monthly income of VND300,000 (US$18.10) or less will be classified as poor.
Urban areas where the average monthly per capita income is VND390,000 ($23.53) or less will also be categorized as poor.
The current regulations set the poverty line at VND200,000 ($12.07) for rural residents and VND260,000 ($15.69) for city dwellers.
It’s estimated that by the end of this year, between 3.1 million and 3.3 million households will be living under the new poverty line.
An official from the ministry told Thanh Nien that the ministry’s decision was a result of the constantly increasing consumer price index (CPI), expected to reach between 25 to 30 percent by the end of the year.
The current levels, set in 2005, mean thousands of struggling households are missing out on government welfare benefits, such as food, financial assistance, health insurance discounts and favorable bank loan interest rates.
The official also said some provinces – including Binh Duong, Dong Nai and Khanh Hoa, and Hanoi, Ho Chi Minh, Can Tho and Da Nang cities – have already modified their poverty lines, which means a consistent measure is not used nationally.
If approved, the new poverty line would come into effect in the beginning of next year and remain in force until the end of 2010, if the full-year CPI in 2009 is less than 10 percent.
Local authorities will be required to update their lists of poor households during the fourth quarter, if the new levels are endorsed.
If the CPI in 2009 is higher than 10 percent, the ministry would again suggest the government raise the poverty line again.
Reported by Le Quang |
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