The National Economic and Development Authority (NEDA) underscored the need to review the prescribed “food bundle” in the computation of poor and food-poor Filipinos.
NEDA Secretary Arsenio Balisacan said a 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,” Balisacan said in a statement.
The NEDA chief issued the statement to address misconceptions about the “food and poverty thresholds.”
“We recognize 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,” he said.
Balisacan said 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 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. 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,” he said.
NEDA also acknowledged the increasing cost of living and the challenges that Filipinos face due to high inflation, adding that no less than the President emphasized that the statistics lose their significance when Filipinos could not afford basic necessities such as food.
“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,” said Balisacan.
The updated 2023 full-year official poverty statistics report shows that the national poverty rate decreased to 15.5 percent in 2023 from 18.1 percent in 2021.
Poverty incidence significantly decreased in 11 of the 18 regions of the country last year. Caraga exhibited the most significant improvement, reducing its poverty incidence by 11.0 percentage points from 25.9 percent in 2021. This was due to the region’s improving tourism industry.
Meanwhile, the National Capital Region maintained its position as the region with the lowest poverty incidence in the country.
While the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) remains among the regions with a high poverty incidence, its poverty incidence declined to 23.5 percent last year from 28.0 percent in 2021.
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