The National Economic and Development Authority on Thursday addressed misconceptions about the “food and poverty thresholds” as computed by the Philippine Statistics Authority.
“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,” NEDA Secretary Arsenio Balisacan.
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.
“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,” he said.
Balisacan addressed the issue as the PSA issued the updated poverty statistics report showing that the national poverty rate decreased to 15.5 percent in 2023 from 18.1 percent in 2021.
NEDA acknowledged the increasing cost of living and the challenges that Filipinos face due to high inflation.
“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,” Balisacan said.
He said the government, together with various sectors of society, is working tirelessly to address the root causes of the issue.
Balisacan said, however, there is a need to revisit the prescribed food bundle to ensure that it accurately represents the commonly consumed food by Filipinos.
“We welcome the PSA’s report that poverty incidence significantly decreased in 11 out of the 18 regions of the country last year. Caraga, in particular, exhibited 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. Meanwhile, the National Capital Region maintained its position as the region with the lowest poverty incidence in the country,” he said.
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.
“Moving forward, we focus on sustaining the momentum of poverty reduction, particularly as we strive to meet our target of reducing poverty to a 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. Addressing any future agriculture supply challenges and implementing continuous efforts to develop and enhance the productivity of our agriculture sector are keys to managing our domestic and external risks to food security. We will also continue to utilize strategic trade policies to address these issues,” said Balisacan.
