Population is wishing for more rapid income growth

19.03.2013

Economic crisis, consequences of which have not been overcome yet, has resulted in strain in household budgets. In the EU-SILC 2012 survey households were asked to name the lowest sum of monthly net income, which on their opinion is necessary to be able to pay for the usual necessary expenses.

Household income: necessary and disposable; 2011 - 2012
(LVL per household member monthly)

To be able to make ends meet families in 2012 were short of LVL 66 per household member monthly; practically the same sum as in 2011 (LVL 671). Income growth was insufficient to cover deficit in household budgets. In 2012, disposable income2 of 21% of households (23% in 2011) were higher or equal to the means necessary to pay for the usual necessary expenses, while income of 79% households (77% in 2011) were lower than sum needed to make ends meet.

EU-SILC survey data show that in 2012 85% of households (87% in 2011) paid for the usual necessary expenses with difficulty. 23% of all households answered that they are able to make ends meet with great difficulty (in 2011 – 25%), 31% with difficulty (in 2011 – 33%) and the same share admitted that they do that with some difficulty (in 2011 - 30%). 12% of the households mentioned that they pay for the usual necessary expenses fairly easily (in 2011 – 11%) and only 3.1% of the households were able to say that they cover these expenses easily or very easily (in 2011 – 2.0%).

The most difficult situation was faced in households consisting of couple with three or more children3 as well as in households composed of one adult with children. Still also single persons aged 65 and over are only slightly behind the mentioned households.

Answers to the question on difficulties to pay for usual necessary expenses in 2012
(in per cent)

Data source of the information on household material situation is survey “European Union Statistics on Income and Living Conditions” (EU-SILC). In 2012, 6.5 thousand households were surveyed and 13 thousand respondents aged 16 years and over were interviewed. Data on 2013 will be compiled within the framework of the EU-SILC 2013 survey that will be launched in March of this year and will be conducted until the end of June.

 

Prepared by Viktors Veretjanovs
Income and Living Conditions Statistics Section
Tel. 67366609

 

Methodological explanations

1 Data on 2011 have been recalculated basing on the population number estimated in the Population and Hosing Census.

2 Household disposable income – cash income from labour, employee income in kind received by using company car for private needs estimated in cash, income or losses received from self-employment, received pensions and benefits, regular material assistance from other households, profit from interests of deposits, dividends, shares, income received by children aged under 16, income from property rental, receipts for tax adjustments from State Revenue Service (for business activities, eligible costs – education, medical treatment etc.). From this total amount of income the following are deducted: real estate tax, amount of money regularly given to other households, amount paid to State Revenue Service due to unpaid or insufficiently paid income tax.

3 Child – person under age of 18.