Several progressive groups from different sectors criticized the National Economic Development Authority’s (NEDA) 64 pesos a day food budget for its low estimation of the food-poverty threshold.

During the Senate’s first day hearing for 2025 budget proposals last Aug. 13, NEDA chief Arsenio Balisacan said that individuals expending less than 64 pesos a day are regarded as “food poor,” suggesting that the amount would fill in a person’s three daily meals.

Balisacan cited that the monthly threshold for a five-member household was 9,581 pesos as of 2023, this amount was much higher than the 2021 poverty threshold where the estimation was 55 pesos per individual.

Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (PAMALAKAYA) vice chairperson Ronnel Arambulo emphasized that the 64 pesos daily budget of NEDA could only provide a kilo of rice and piece of egg, while on the other hand, Bagong Alyansang Makabayan president Renato Reyes suggested that the agency should try the 64 pesos budget per day for the whole year before concluding the food poor threshold.

Rice is a staple food of Filipinos, a good source of protein that fuels energy in the body. However, inflation has significantly impacted rice, resulting in a price hike in the market, wherein a kilo of rice would cover 80% of the budget, leaving the excess amount to purchase a meal that couldn’t even last for lunch.

As of today, minimum-wage workers have been receiving an additional 35 pesos for their daily salary, although this rise does not guarantee that their burden will lessen as commodity prices keep on increasing.

It won’t last a day

With the current increase in food costs, students are also carrying the burden of budgeting their allowances for food that would satiate them while being away from home.

According to the Philippine Statistics Authority, food inflation at a national level climbed to 6.7% this July from 6.5% in June. This record went over the July 2023 rate of 6.3%. As a result, commodity prices in the market jumped, and consumers were compelled to find substitutes, which were still costly enough for others.

Carissa Balisi, a third-year psychology, explained that the 64 pesos budget for a daily meal would lead to starvation.

“Kung hindi nakukuha ng tao ‘yung nourishment na dapat for everyday and for every meal, syempre manghihina sila, mamamayat sila, mangangayayat. They would starve,” she said.

Balisi also shared that meals she ate in carinderias, sisigan, bulalohan, and tapsihan exceeded the budget.

Eateries are one of the go-to places for students and workers who are on a budget. The dishes cost around 60 to 70 pesos, excluding the 10 to 12 pesos cups of rice from the rate, which makes one meal range from 72 to 82 pesos per meal.

“Kung proper meal, hindi kaya kasi baka naman ang pinagbabasehan nila ay tinapay lang ang bibilhin,” she said.

Determining the disconnection

Hearing the 64 pesos daily budget for three meals is something that is hard to digest because dividing them into three would only cost 21 per meal, which seems difficult to fit for a nutritious meal.

As the day goes by, there are exchanges of price increases and decreases in commodities and products in the market. However, inflation is still on the scene, which is why most of the public disagrees with the food poverty threshold.

UST economics professor and economist Asst. Prof. Clarissa Ruth Racho-Sabugo said that the 64 pesos daily budget is deemed as an incredulous amount because it is detached from reality.

“Makikita natin ‘yung reason why the public uproar was there regarding the announcement from NEDA and PSA is because everybody feels the effect of inflation and we feel that threshold is not reflective of reality,” she explained.

She added that inflation is already considered in determining the figure for the poverty threshold, citing Balisacan’s statement during the Senate hearing. The economics professor suggests that maybe it’s time to revisit and reexamine methodology in estimating the poverty threshold.

“For instance, ano ba kasi yung items? What are these items included in the food basket that is computed for the food threshold, parang what’s the method used, least-cost method ba siya? Pinakamura ba sa lugar or probinsya? ‘Yun ba yung basehan ng pag compute non?,” she continued.

According to National Statistician Denis Mapa, the PSA is in preparation for the refinement of its menus and methodology for the food threshold that will be utilized in the 2025 national poverty estimations.

“Perhaps it shouldn’t be the least cost, maybe an average, right? Kasi hindi naman tayo lahat nakaka-access sa least-cost. That’s probably one thing that needs to be done there,” she added.

During the budget hearing, Department of Trade and Industry Undersecretary Amanda Nograles provided some foods that can be bought for 64 pesos as well as their suggested retail prices, wherein she mentioned that a can of sardines ranges from 15 to 20 pesos, 55 grams of unnamed instant noodles is worth 7.75 pesos, and 18 grams of three-in-one coffee costs 4.10 pesos.

Sabugo also mentioned that looking at the assessment through the lens of a typical consumer, she felt there was a certain disconnection between what was happening in the economy and the measures released.

“I think the way how to minimize the disconnect is to make the methodology more reflective of reality. ‘Yon lang talaga ang pinaka bottom line,” she recommended. - Shane Quiachon