Individuals spending below P64 per day on three meals are considered “food poor,” according to National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan.
Current Threshold
During the first day of the Senate hearing on the proposed 2025 budget, Balisacan was asked about the current threshold for being classified as “food poor.” He responded, “As of 2023, a monthly food threshold for a family of five is 9,581 pesos. It comes out to about P64 per person.” This amount is meant to cover three daily meals per person.
Historical and Future Thresholds
This threshold has increased from P55 per person in 2021 and is projected to rise to P67 in 2025. The increase is primarily due to inflation adjustments.
Purpose of the Threshold
Balisacan explained that the threshold is adjusted for inflation to monitor the effectiveness of government policies on poverty. “The reason we are keeping it constant, in real terms after adjusting for inflation, is just to ensure that we are tracking properly the changes and allow us to understand whether our policies, our programs are working insofar as these are able to reduce poverty,” he said.
Senate’s Reaction
Senators urged NEDA to review the threshold to ensure accurate poverty forecasts. Senator Grace Poe pointed out, “There are certain things that need to be constant, but there are certain things that have to be adjusted because when you compute poverty thresholds using an old number which is obviously not workable anymore, P20 per meal eh hindi totoo ‘yung poverty forecast [niyo] (P20 per meal means your poverty forecast is not true).”
Revisiting the Threshold
Balisacan agreed that it is time to revisit the threshold. “The basket has not been changed for some time. Although, the value of that basket has been adjusted for inflation… We’ll be revisiting, I think it’s due for revisit of that poverty threshold, natin kasi medyo matagal na rin, more than a decade na ‘yon since it was set,” he said.
Determining the Food Basket
The Department of Health and the Food and Nutrition Research Institute were responsible for determining the current food basket. Balisacan indicated that the revisiting process will consider factors such as food preferences and the relative prices of goods to ensure it meets nutritional, particularly calorie, requirements.