Assessment: State Benefits to Persons with Disabilities and Poor Families with Children
Observations and a Way Forward
The consultancy reviewed state benefits provided to disabled citizens and poor families in the Kyrgyz Republic from a poverty reduction perspective. Current legislation of the Kyrgyz Republic acknowledges entitlement to two types of state benefits, the Social Monthly Benefit (SMB) supporting people with disabilities or otherwise unable to work, and the Unified Monthly Benefit (UMB), supporting poor families. Available evidence on the incidence of the Social Monthly Benefit suggests that it is not explicitly focused on poverty reduction as there is only partial correspondence between the incidence of the disadvantage and poverty. The Guaranteed Minimum Consumption Level (GMCL) defines the maximum levels of transfers within the UMB. However, in its current form the GMCL falls well below the poverty line. The selection of beneficiaries under the UMB can be improved, leading to improved poverty reduction effectiveness.