The Market Monitor Minding the Nation's Business
By Rose de la Cruz
While expressing undeserved optimism about the improving poverty situation in the country, the National Economic and Development Authority took cognizance of the need to revisit the controversial prescribed food bundle that has come under fire from most senators during the deliberations on the 2025 budget.
NEDA Secretary Arsenio Balisacan, in a statement yesterday said, “part of the government’s role is to measure and monitor the trend of poverty over the years. This task requires us to develop a consistent survey methodology patterned after international standards, hence, the use of these thresholds. However, as I have mentioned in the recent briefings of the Development Budget Coordination Committee to the Senate, there is a need to revisit the prescribed food bundle to ensure that it accurately represents the commonly consumed food by Filipinos.”
The updated 2023 Full Year Official Poverty Statistics Report released August 15 by the Philippine Statistics Authority (PSA) reveals promising signs of inclusive government efforts to reduce poverty across our regions and provinces. While there is reason for optimism—the report shows an overall decrease in poverty incidence—it is important to remember that poverty is a multifaceted issue requiring sustained and coordinated efforts to address. Its cost to the nation is enormous, and we treat it with utmost seriousness.
The national poverty rate has decreased to 15.5 percent in 2023 from 18.1 percent in 2021. These figures are encouraging but underscore the complexity of the issue at hand.
He clarified the misconceptions about the food and poverty thresholds, explaining that “poverty pertains to a state of deprivation and an individual’s perception of the quality of life they enjoy compared to their aspirations. The food threshold represents the cost of a food bundle that meets the energy and micronutrient requirements of the average Filipino. Over time, we expect food (and non-food) preferences to change, partly due to lifestyle changes, changes in relative prices, and even increases in income.”
These thresholds serve as part of a broader set of tools used to assess the country’s development progress and to measure the effectiveness of the government’s policies and programs in addressing poverty. They were never intended to be prescribed budgets for a decent standard of living. They do not dictate how much a family should spend on food, nor do they provide an idea of a desirable household budget. Instead, these thresholds, along with other socioeconomic indicators, are metrics that we use to determine the inclusiveness of the country’s economic growth and if our policies have improved the well-being of the poor. Let me emphasize that poverty is more than just needing more income to meet these thresholds. Statistics help give us a sense of scale. Behind these statistics and tools are people living in a state of deprivation, struggling to get through each day with hopes and dreams for a better life, Balisacan stated.
He said even the President acknowledges the increasing cost of living and the challenges that Filipinos face due to high inflation and that “the statistics we measure and publish lose their significance when Filipinos cannot afford basic necessities such as food. Filipinos living in poverty are not mere statistics in a report; our countrymen are carrying their struggles, hoping to fulfill their potential. Each one deserves empathy and support, particularly from the government.”
The government, together with various sectors of society, is working tirelessly to address the root causes of this issue. Through a range of social protection programs, policy reforms, and development initiatives, we aim to break the cycle of poverty and create a society where everyone has the opportunity to prosper.
He said the PSA’s report that poverty incidence significantly decreased in 11 out of the 18 regions of the country in 2023, with CARAGA exhibiting the most significant improvement reducing its poverty incidence by 11.0 percentage points from 25.9 percent in 2021. This improvement is mainly due to the region’s improving tourism industry. The NCR maintained its position as the region with the lowest poverty incidence in the country.
The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) remains with high poverty incidence, which dropped to 23.5 percent last year from 28.0 percent in 2021. Particularly, the government is intensifying its efforts to expedite poverty reduction measures in BARMM to support livelihood and peacebuilding that will encourage regional investments.
The economic recovery post pandemic in mid-2022 led to the recovery of businesses and employment. Government also continuously provided social protection programs and services from 2022 to 2023 which contributed to the easing poverty in the country. Although the national poverty incidence of 15.5 percent shows that we have exceeded our poverty reduction targets of 16 to 16.4 percent for 2023, as set in the Philippine Development Plan (PDP) 2023-2028, we remain vigilant in monitoring and addressing challenges, such as inflation, that could undermine our efforts to alleviate poverty. Indeed, poverty would have declined further without the high inflation experienced.
Moving forward, the government would stay focused on sustaining the momentum of poverty reduction to the target single-digit level by 2028. “To maintain our gains, the government will continue to ensure that nutritious food is available, accessible, and affordable for all Filipinos by addressing future agriculture supply challenges and implementing continuous efforts to develop and enhance agricultural productivity to manage domestic and external risks to food security and adopting strategic trade policies to address these issues.
Through the Trabaho Para sa Bayan (TPB) Act, we aim to enhance the resilience and adaptability of our labor force to cope with the emerging trends in the job market by implementing strategies for the skills development, upskilling, and reskilling; attracting increased investment to expand higher-quality employment opportunities to raise the purchasing power of individuals and households and developing improved policies to support workers, employers, and particularly those in vulnerable and informal sectors.
The government will continue to strengthen and ensure social protection programs and services to address the vulnerabilities and risks faced by Filipinos. The Department of Social Welfare and Development aims to reduce the incidence of involuntary hunger experienced by low-income households by expanding the implementation of the Food Stamp Program from five pilot areas to 21 priority provinces, targeting 300,000 beneficary-households by 2028. Cash grants under the Pantawid Pamilyang Pilipino Program (or 4Ps) will also be adjusted to account for inflation, augmenting households’ ability to purchase nutritious food.