As a result, while people with fixed incomes and the upper middle income class were still able to use their savings to make a living, people on lower income class with non fix income were at risk of starvation as they could not work and had no savings. The ability of the APBN to provide social assistance was crucial to avoiding a social crises.
With the economy and labour market performing well over recent months, the public finances are well positioned to address the most immediate needs arising from the Russian invasion of Ukraine, including the necessary humanitarian response. Temporary and targeted measures to reduce the impact of higher inflation on those households less able to cope with current circumstances are also appropriate.