Food, poverty thresholds not meant to dictate poor’s spending — Balisacan

August 16, 2024 | 12:18pm

MANILA, Philippines — Food and poverty thresholds are just some of the assessment tools the government uses to measure impoverishment in the country, not to dictate how much a poor person should spend, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said.

NEDA faced criticisms after it was revealed that the food poverty threshold was a little over P64 a day per person.

While Balisacan said they would revisit this, he maintained that a constant metric is needed for measuring poverty.

In a statement on Thursday night, Balisacan said he would like to clarify misconceptions about food and poverty threshold.  

“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,” the NEDA chief said. 

According to Balisacan, the thresholds, together with other socioeconomic indicators, are metrics to determine how inclusive economic growth is. 

“They are not, and 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,” he said. 

Balisacan explained that statistics give a sense of scale but acknowledged that there are real people behind these numbers.

“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 NEDA secretary said. 

The Philippine Statistics Authority recently reported a lower poverty incidence for 2023 at 10.9%, compared to the poverty incidence in 2021, which was 13.3%. The 2023 poverty threshold was at P13,873 per month. 

While the government has touted a decline in poverty incidence, the recent controversy over thresholds has cast doubt on these numbers.

Balisacan has previously stated, however, that even if the numbers were adjusted for inflation, the trend in poverty reduction would remain the same.