Panel b. Differentiated minimum income of the family (DMIf) by family type, BGN per month, 2020

# **Differentiated minimum income of the family (DMIf)**

|**Pre-Reform**<br>**Post-Reform**|
|---|

|**Family Type **|**_Percentage of_**<br>**_GMI_**|**_2020 BGN_**|**_Percentage_**<br>**_of 30% AROP_**<br>**_Poverty Line_**|**_2020 BGN_**|
|---|---|---|---|---|
|Single Person over 75, living alone|165|123.8|165|249.6|
|Single persons over 65 years of age, living alone|140|105.0|165|249.6|
|Single Parent with 1 child <3|211|158.3|220|332.8|
|Single Parent with one child >16 and studies|191|143.3|220|332.8|
|Single Parent with 2 children <3|302|226.5|320|484.1|
|Single Parent with 2 children>3 & <16|282|211.5|320|484.1|
|Family with two parents with 1 child|223|167.3|300|453.9|
|Family with two parents with 2 children|314|235.5|400|605.2|
|Single person up to 65 capable of work|73|54.8|165|249.6|
|Single persons incapable of work|73|54.8|165|249.6|

Source: Own estimates based on OECD (2020) and <u>Rules for Implementing the Law on Social Assistance (amended June 1, 2023).</u> _Note: The reform affected the basis for the Differentiated Minimum Income, from the GMI to 30% of the AROP poverty line. However, it did not change the percentages assigned to each individual. In panel b, the differentiated minimum income of the family (DMIf) is calculated as the sum of the individual DMI of each family member._

**<mark>The new income eligibility thresholds are still low compared with the estimated value of the Bulgarian food basket, limiting coverage of the bottom quintile</mark> .** The Bulgarian food basket indicates the monthly budget needed for an adequate food intake by three reference households (consisting of children and people of working age, in good health, without disabilities, and living in Sofia<sup>21</sup> ). The basket includes a food budget and kitchen equipment required to prepare, serve, consume, and preserve this food. Furthermore, it considers the necessary budget for physical activity and other food functions, such as its social functions. In 2015, the Bulgarian basket w <mark>as estimated under the European Reference budget network.</mark><sup>22</sup> The food basket has been developed following nutritionist recommendations and national dietary guidelines and considering the cultural specificities of Bulgarian heating habits. The feasibility and acceptability of the basket have been verified through focus group discussions involving citizens with different socio-economic backgrounds. The estimates show that in 2015, the monthly budget required for

> 21 Notice the food basket does not take into account spatial differences in living standards since it was estimated for those living in Sofia. The specific constitution of the nutritious food assortment aligns with the national dietary recommendations. The Ministry of Health has formulated a National Nutrition Action Plan, assigning the task of creating guidance for wholesome eating to the National Centre of Public Health Protection.

> 22 Reference budgets have been developed across the EU by _the Herman Deleeck Centre for Social Policy, University of Antwerp and DG Employment, Social Affairs and Inclusion,_ with the purpose of assessing income support – in particular minimum income schemes – in the EU. <u>https://ec.europa.eu/social/main.jsp?catId=1092&intPageId=2312&langId=en</u>

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