Low salaries and growing inflation lead to sudden decrease in living standards in Transnistria

The social-economic situation in the Transnistrian region continues to get worse. According to the latest information provided by the Federation of Trade Unions of Transnistria, the average salary of an employee, taking into account all the incomes, including the allowances for food, clothing, transport and other social benefits, rose by 31% to 2,009 Transnistrian rubles (237 USD), Info-Prim Neo’s correspondent in the area reports. In real terms, taking account of the inflation processes, the average salary increased by 7-8%. Since the start of this year, sausages grew dearer by 29%, meat by 67%, eggs by 68%, milk and dairy products by 47%, bread and wheat products by 51%. Sunflower oil got dearer threefold, while the population’s expenses for public utilities and taxes went up by 39%. The average salary in the Transnistrian region is several times lower than in the neighboring countries: 2.7 times lower than in Russia, 1.7 times lower than in Belarus, 1.4 times lower than in Ukraine. The low salaries and the rising inflation have led to a sudden decrease in the living standards of the population. Earlier this week, the Transnistrian parliament adopted the conception of the budget and taxation policy in second reading. Under this document, the salary in the budgetary sector the next year will rise by 25%, while in 2010 and 2011 – by 11% and 10% respectively. The MPs said that the rise in the salary in the budgetary sphere is insufficient if taking account of the rate of inflation. But there are no resources and a larger rise is impossible. The parliament of the region is examining the proposal to reduce the number of employees in the budgetary sphere by 5 - 15 % within three years.