New poverty threshold set at P10,000 in NCR
By Michelle Remo
Philippine Daily Inquirer
First Posted 01:31:00 06/01/2008
Filed Under: Poverty
THE MINIMUM AMOUNT THAT A FAMILY of five living in the National Capital Region should earn nowadays to stay out of poverty is at least P10,000 a month, or over 16 percent more than what was required two years ago, according to the National Statistics Coordination Board (NSCB).
The estimated income threshold only covers basic needs like food, clothing, shelter and transportation. It does not include spending for recreation and emergencies.
The findings have increased fears that more families would fall below the poverty line.
According to the NSCB, the new estimated income threshold takes into account the latest increase in fuel prices.
NSCB’s P10,000 estimate is up 16.7 percent from the P8,569 needed in 2006.
NSCB said, however, that the latest estimated income threshold was preliminary, as the official figures would be determined in 2009. Poverty surveys are conducted every three years, the last time in 2006.
“Consumer prices have increased by double-digit levels from 2006 to 2008. The cost of rice alone has risen 50 percent,” NSCB director general Romulo Virola said in a phone interview.
Virola said that if the average income of Filipino families did not increase commensurate with the income threshold, the poverty incidence could worsen.
The NSCB earlier reported that 26.9 percent of Filipino families were poor in 2006. The government set a target of reducing the figure to 17 percent by 2010, but new economic pressures raise doubts on the attainability of the goal.
Augusto Santos, director general of the National Economic and Development Authority, earlier said the government might consider revising the poverty reduction target because the rising prices of oil and commodities have made the goal unrealistic.
Santos also said the government was thinking of ways to help Filipinos cope with inflation, such as by spending more on social services.
The Department of Finance said last week the government was resetting the goal of a balanced budget this year to 2010. The government now expects to post a deficit of 75 billion, given its plan to spend more.
The DOF said economic managers decided to spend P93.6 billion more than the approved national budget of P1.236 trillion this year.
Some P18.6 billion in additional spending will be covered by revenues from VAT on oil, the DOF said. The balance of P75 billion will be covered by borrowings, which will result in a budget deficit.
Some of the additional social services being considered include the granting of cash to selected poor families.
Virola, however, has expressed reservations over the prudence of granting direct cash to the poor. He said what is needed to get people out of poverty is a regular source of income.
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