In the condition of transfer to the market economy Turkmenistan carries out the state policy of maintaining of active income of population and evening up their level. Social transfers (subsidies, grants and others) are an inseparable part of the state policy in the social sphere. This system presents one of the preconditions for ensuring social justice and creation and support of political stability in society. Through the institute of social transfers, the conception of minimum guaranteed income is realized in the form of social services.
Transfers in the form of social guarantee are provided to all citizens without any exception. Generality of maintaining of a definite level of incomes and social services reflects the highest level of state guarantees even though it requires the highest expenditures of public resources. Such universality of social transfers is very efficient in the conditions of transit to the market relations and global financial and economic crisis and it has been provided in the experience of Turkmenistan. Part of social transfers are allotted to citizens of Turkmenistan in the natural form which ensures their purpose-oriented use, rise of active incomes of population and unlike payments keeps inflation.
For 20 years now (within the limits), all citizens of the country are provided with free gas, electric power and drinking water. At that it should be noted that prices for gas and electricity remain the lowest in the world (0.70 US dollars for 1000 cubic meters of natural gas, 0.42 US dollars for 100 kilowatt hours). Moreover, the prices for extra limit consumption of electricity in the high-rise residential houses are still lower. It is important that subsidy for gas and electricity is given to every citizen of Turkmenistan as the country has been practically gasified and electrified completely.
For over five years (from February 2008) in compliance with the resolution of the president of Turkmenistan «on regulation of allotment of petrol and diesel fuel to owners of private vehicles» free petrol (by coupons) and diesel fuel is provided to owners of private vehicles according to the set standards. The refuelling with fuel exceeding the monthly-allowed volume established is paid by commercial prices. The average commercial price for a litre of petrol and diesel fuel also remains one of the lowest in the world, correspondingly 0.22 and 0.20 US dollars. These “fuel” subsidies were introduced in Turkmenistan with a view to ensure social security of population in connection with liberalization of prices for petrol and diesel fuel. According to the data of the International Energy Agency, fuel subsidies (gas, electricity, petrol and diesel fuel) per capita in Turkmenistan is one of the most highest in the world.
At the same time, it should be noted that allotment of free petrol by coupons has helped to certain extent, to economize its use. For 2008-2013 the total number of private vehicles (cars, trucks and buses and others) in the country has grown more than 1.6 times including the number of cars by 1,7 times. However, the total consumption of petrol by private vehicles (including by coupons) in this period has grown only by 20 %.
As the monitoring of the budget of households which is held by the state committee for statistics of Turkmenistan has shown, provision of the first (quintillion) group of households with cars with the least incomes has grown in 2013 as compared with 2007 almost by 2,5 times. At that, provision of rural population with private vehicles has happened to be higher than the urban population.
At present, the grants-in-aid and awards are allotted to citizens of Turkmenistan at the expense of the state budget as well as financial means of ministries and departments for gas, electivity, ,water (including sewage disposal), heating, rents, table salt, payment for telephone, public transport, (bus), railway and airway transport, (local lines), petrol, diesel fuel, construction materials, (bricks, cement, slate)
In compliance with the growth of material wellbeing of population of the country, the number of goods and services subsidized may be reduced. So, in the second half of 2012the prices for flour and bread were liberalized.
In Turkmenistan, the government carries out a direct regulation of primary distribution of money income establishing a guaranteed minimum of wages and salaries. From January 1, 2014, the minimum remuneration of labour has been established as 485 manats per month, which shows the high level of social subsistence minimum (minimum consumer budget). Minimum rate of salaries and social payments of the state are directed to the rise of subsistence minimum, which complies with article 26, part 2 of the Declaration of rights, and liberties of man and citizen.
A special significance is given to the protection of money incomes from inflation. Indexing is used with this purpose and it increases the nominal income depending on the rise of prices. The indexing of incomes is realized both at the state and at separate levels. Lately in Turkmenistan the rate of salaries financed by the budget as well as self-financing enterprises and social organizations, as well as pensions, benefits and scholarships are increased yearly. For the period of 2007-2013, active money incomes of households have grown by 1, 8 times.
For evaluation of differentiation of incomes of population in the world practice concentration factor (or the index of Gini) for revenues is used. The least significance the index of Gini assumes the more evenly incomes are distributed in the state. And on the contrary, if the indicator grows then the bulk of incomes is concentrated in the hands of a significant part of population (the rich). According to the data of UNDP cited in the global report «on human development of», Gini coefficient, let’s say, in Norway, which has occupied the first place in the world for its index of human development, has made 25, 8%, in USA (thirds place) – 40, 8%. According to the data of the national statistics, by possessing total revenues (with grants and awards without compulsory payments and free services) the rate of Gini coefficient in Turkmenistan has made 25%. At that, the levelling of the given index by the territory (city and village) and regions of the country is observed.
Thus, the main principles of social policy of Turkmenistan remain to be combination of state regulation with market self-regulation; balance of economic efficiency and social justice; mixed financing of social transfers. All these measures ensure social welfare and stability –such situation of society and its subjects, which are characterised with stability of their economic and social position.
Transfers in the form of social guarantee are provided to all citizens without any exception. Generality of maintaining of a definite level of incomes and social services reflects the highest level of state guarantees even though it requires the highest expenditures of public resources. Such universality of social transfers is very efficient in the conditions of transit to the market relations and global financial and economic crisis and it has been provided in the experience of Turkmenistan. Part of social transfers are allotted to citizens of Turkmenistan in the natural form which ensures their purpose-oriented use, rise of active incomes of population and unlike payments keeps inflation.
For 20 years now (within the limits), all citizens of the country are provided with free gas, electric power and drinking water. At that it should be noted that prices for gas and electricity remain the lowest in the world (0.70 US dollars for 1000 cubic meters of natural gas, 0.42 US dollars for 100 kilowatt hours). Moreover, the prices for extra limit consumption of electricity in the high-rise residential houses are still lower. It is important that subsidy for gas and electricity is given to every citizen of Turkmenistan as the country has been practically gasified and electrified completely.
For over five years (from February 2008) in compliance with the resolution of the president of Turkmenistan «on regulation of allotment of petrol and diesel fuel to owners of private vehicles» free petrol (by coupons) and diesel fuel is provided to owners of private vehicles according to the set standards. The refuelling with fuel exceeding the monthly-allowed volume established is paid by commercial prices. The average commercial price for a litre of petrol and diesel fuel also remains one of the lowest in the world, correspondingly 0.22 and 0.20 US dollars. These “fuel” subsidies were introduced in Turkmenistan with a view to ensure social security of population in connection with liberalization of prices for petrol and diesel fuel. According to the data of the International Energy Agency, fuel subsidies (gas, electricity, petrol and diesel fuel) per capita in Turkmenistan is one of the most highest in the world.
At the same time, it should be noted that allotment of free petrol by coupons has helped to certain extent, to economize its use. For 2008-2013 the total number of private vehicles (cars, trucks and buses and others) in the country has grown more than 1.6 times including the number of cars by 1,7 times. However, the total consumption of petrol by private vehicles (including by coupons) in this period has grown only by 20 %.
As the monitoring of the budget of households which is held by the state committee for statistics of Turkmenistan has shown, provision of the first (quintillion) group of households with cars with the least incomes has grown in 2013 as compared with 2007 almost by 2,5 times. At that, provision of rural population with private vehicles has happened to be higher than the urban population.
At present, the grants-in-aid and awards are allotted to citizens of Turkmenistan at the expense of the state budget as well as financial means of ministries and departments for gas, electivity, ,water (including sewage disposal), heating, rents, table salt, payment for telephone, public transport, (bus), railway and airway transport, (local lines), petrol, diesel fuel, construction materials, (bricks, cement, slate)
In compliance with the growth of material wellbeing of population of the country, the number of goods and services subsidized may be reduced. So, in the second half of 2012the prices for flour and bread were liberalized.
In Turkmenistan, the government carries out a direct regulation of primary distribution of money income establishing a guaranteed minimum of wages and salaries. From January 1, 2014, the minimum remuneration of labour has been established as 485 manats per month, which shows the high level of social subsistence minimum (minimum consumer budget). Minimum rate of salaries and social payments of the state are directed to the rise of subsistence minimum, which complies with article 26, part 2 of the Declaration of rights, and liberties of man and citizen.
A special significance is given to the protection of money incomes from inflation. Indexing is used with this purpose and it increases the nominal income depending on the rise of prices. The indexing of incomes is realized both at the state and at separate levels. Lately in Turkmenistan the rate of salaries financed by the budget as well as self-financing enterprises and social organizations, as well as pensions, benefits and scholarships are increased yearly. For the period of 2007-2013, active money incomes of households have grown by 1, 8 times.
For evaluation of differentiation of incomes of population in the world practice concentration factor (or the index of Gini) for revenues is used. The least significance the index of Gini assumes the more evenly incomes are distributed in the state. And on the contrary, if the indicator grows then the bulk of incomes is concentrated in the hands of a significant part of population (the rich). According to the data of UNDP cited in the global report «on human development of», Gini coefficient, let’s say, in Norway, which has occupied the first place in the world for its index of human development, has made 25, 8%, in USA (thirds place) – 40, 8%. According to the data of the national statistics, by possessing total revenues (with grants and awards without compulsory payments and free services) the rate of Gini coefficient in Turkmenistan has made 25%. At that, the levelling of the given index by the territory (city and village) and regions of the country is observed.
Thus, the main principles of social policy of Turkmenistan remain to be combination of state regulation with market self-regulation; balance of economic efficiency and social justice; mixed financing of social transfers. All these measures ensure social welfare and stability –such situation of society and its subjects, which are characterised with stability of their economic and social position.