Philippine Poverty

First Semester 2018

Leland Joseph R. Dela Cruz, Ph.D.

ldelacruz@ateneo.edu
Development Studies Program and the
Office for Social Concern and Involvement
Ateneo de Manila University
Philippine Poverty Situationer
First Semester 2018
 All statistics here are based on
information released by the Philippine
Statistical Authority on April 10, 2019 at
this website:
http://www.psa.gov.ph/poverty-press-
releases/nid/138411
When is a person considered
poor? PSA
The poverty threshold “refers to the minimum
income/expenditure required for a family/individual to
meet the basic food and non-food requirements.”
How does the government compute
for the poverty threshold? PSA
1. The government constructs a menu per region that
satisfies basic nutritional requirements. The
government computes for the cost of that menu.
(ex. P48) This is the basis of the subsistence
threshold (minimum income needed to purchase
food requirements)
2. The government computes for the proportion of
total basic expenditures that is budgeted for food
using survey data. (ex. 69.82%)
3. The figure obtained in #1 is divided by the figure
obtained in #2. (ex. P69)
What is the Philippine Subsistence
Threshold (First Semester 2018)?

Individual/ six months P8,804

Individual/ month* P1,467
Individual/ day* P48
Family/ six months* P44,022
Family/ month PSA P7,337
Family/ day* P241
*Minimum income needed to purchase food requirements. PSA reports family per
month and individual per six months
What is the Philippine Poverty
Line (2018)?
Individual/ six months P12,577
Individual/ month* P2,096
Individual/ day* P69
Family/ six months* P62,885
Family/ month PSA P10,481
Family/ day* P345
*PSA reports family per month and individual per six months
What is the NCR Poverty Line (First
Semester 2018)?

Individual/ six months PSA P14,102

Individual/ month* P2,350
Individual/ day* P77
Family/ six months* P70,510
Family/ month P11,752
Family/ day* P386
*PSA reports family per month and individual per six months. Based on Table 1
 Regional Poverty Lines (Families),
January to June 2018 PSA
Region Threshold Region Threshold
NCR P14,102 VII P12,696
CAR P12,352 VIII P12,201
I P12,821 IX P12,388
II P12,142 X P12,232
III P12,885 XI P12,709
IV-A P13,528 XII P12,067
IV-B P11,420 CARAGA P12,314
V P11,946 ARMM P13,578
VI P11,937
Provincial poverty lines are also available. Based on Table 1
Poverty Incidence, First
Semester 2018 PSA
 21.0% of Filipinos are poor.
 21.0% of Filipinos earned less than
P12,577 from January to June 2018,
P2,096 a month and P69 a day.
 16.1% of Filipino families are poor.
 16.1% of families earned less than
P62,885 from January to June 2018,
P10,481 a month and P345 a day.
Poverty Incidence Among Families
First Semester 2015, 2018 PSA
First Semester Poverty Incidence
2018 16.1%
2015 22.2%

* There is a footnote on the press release that First Semester

2015 Poverty Statistics were revised in consonance with the
updating of the market basket for the collection of prices for CPI.
This accounts for the discrepancy between the 2018 press release
and the 2015 press release found here:
http://www.psa.gov.ph/poverty-press-releases/nid/138411
Poverty Incidence Among Individuals
First Semester 2015, 2018 PSA
First Semester Poverty Incidence
2018 21.0
2015 27.6

* There is a footnote on the press release that First Semester

2015 Poverty Statistics were revised in consonance with the
updating of the market basket for the collection of prices for CPI.
This accounts for the discrepancy between the 2018 press release
and the 2015 press release found here:
http://www.psa.gov.ph/poverty-press-releases/nid/138411
 Regional poverty incidence
(Families, First Semester 2018) PSA
Poverty Poverty
Region Region
Incidence Incidence
NCR 4.9% VII 19.0%
CAR 13.8% VIII 30.4%
I 8.7% IX 32.4%
II 15.3% X 25.4%
III 7.8% XI 17.7%
IV-A 7.6% XII 27.2%
IV-B 15.0% CARAGA 28.3%
V 21.4% ARMM 55.4%
VI 15.9%
 Regional poverty incidence
(Individuals, First Semester 2018) PSA
Poverty Poverty
Region Region
Incidence Incidence
NCR 6.6% VII 24.1%
CAR 17.9% VIII 37.6%
I 11.8% IX 39.5%
II 19.3% X 31.5%
III 10.3% XI 23.4%
IV-A 10.1% XII 33.7%
IV-B 20.6% CARAGA 35.4%
V 28.0% ARMM 63.0%
VI 21.2%
 Least Poor Cities and
Provinces (Families) PSA
Poverty Incidence
First Semester 2018
2nd District NCR (East NCR) 3.5%
Pampanga 3.5%
La Union 3.7%
4th District NCR (South NCR) 3.9%
Rizal 4.8%
Bulacan 4.9%
Laguna 5.0%
Ilocos Norte 5.5%
1st District NCR (Manila) 5.7%
Capiz 5.9%
 Poorest Cities and Provinces
(Families) PSA
Poverty Incidence
First Semester 2018
Lanao del Sur 68.0%
Sulu 65.8%
Basilan 65.3%
Isabela City* 52.6%
Maguindanao 47.9%
Eastern Samar 43.0%
Cotobato City 42.3%
Zamboanga del Norte 41.2%
Saranggani 40.5%
Davao Occidental, Dinagat Islands 36.7%
* Small sample size
Notes: Poverty Incidence
 Poverty decreased from first semester
2015 to first semester 2018.
 Note that inflation in 2018 peaked in
September/October. We will see what
the effect on poverty was when the full
year poverty statistics are released later
this year or early next year.
Notes: Poverty Incidence
 Only 4.9% of families and 6.6% of
individuals in NCR are poor based on
these statistics.
 The region with the highest incidence of
poverty is ARMM where 55.4% of
families and 63.0% of individuals are
poor
Notes: Poverty Incidence
 7 of the 10 least poor cities/provinces
are part of NCR or are adjacent to NCR.
The 3rd district of NCR ranks 13th least
poorest.
 10 of the 11 poorest cities/provinces
are part of Mindanao
Notes: Minimum Food Budget
 On average, each person in the Philippines
needs P48 per day to purchase the minimum
food requirements (actual amount varies per
city/province). A family of 5 needs P241 per
day to purchase the minimum food
requirements.
 In NCR, the equivalent amount is P54 per
person per day or P270 per day for a family
of 5.
Notes: Poverty Line
 There is a note in the release saying
that there was “updating of the market
basket for the collection of prices for
CPI.” I have yet to figure out exactly
what that means. Did they revise the
basket of goods or the price of the
items in the old basket of goods?
Notes: Poverty Line
 An average Filipino needs to earn at least P69 per
day to be considered not poor, i.e. they are able to
purchase basic food and non-food requirements. An
individual who earns P2,096 a month or P12,577 for
six months is considered not poor. An average
Filipino family of 5 needs to earn P345 a day or
P10,481 a month to be considered not poor.
 Filipinos in the NCR require P77 per person a day to
be considered not poor. This is equivalent to P386
per day for a family of 5 or P11,752 a month
Notes: Non-food Budget
 Since the poverty line is P69 per person per day for the
average Filipino and the food budget is P48 per person
per day, this leaves P21 per person per day for all non-
food basic needs. For a family of 5, this amounts to P104
per family per day for all non-food basic needs.
 The computation of the poverty line is primarily based on
food (with a certain proportion of income allotted for non-
food basic needs) and this is one of the criticisms of
Mahar Mangahas against this methodology. See for
example: https://opinion.inquirer.net/99161/unrealistic-
official-poverty
Notes: Poverty Line
 There was an issue in June 2018 about something
that NEDA USec Edillon supposedly said that P10,000
is enough for a family of five. She didn’t say that and
she clarified that P10,000 was only a hypothetical
figure. NEDA Sec Pernia later said the actual amount
needed to survive per month is P42,000.
 But the statistics that were just released suggest
that, according to the government, P10,481 per
month is enough to purchase basic food and non-
food requirements.
Notes
 We await the release of the 2018 full
year statistics which will include figures
on magnitude of poverty.
 Philippine Poverty
First Semester 2018

Leland Joseph R. Dela Cruz, Ph.D.

ldelacruz@ateneo.edu
Development Studies Program and the
Office for Social Concern and Involvement
Ateneo de Manila University