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Press Release
To Buoy Up a Family of Five in NCR:
Sole Breadwinners Need
P8,061 Monthly Income
(PR-200702-SS1-02, Posted 02 March 2007)
I. Highlights of 2006-2007 official provincial thresholds
Following the movement of poverty threshold from 2000 up to present, Filipino families consisting of five members should be earning a combined monthly income of PhP 6,195 in order to meet their most basic food and non-food needs for this year. A sole breadwinner in a five-member family residing at the National Capital Region (NCR) is expected to find an arduous task in bringing the entire family above the poverty line if he/she only earns at most PhP 265 per day.
Table 1. Monthly and Daily Poverty and Food thresholds for a Family of Five, All Areas
|
|
Monthly |
Daily |
||||
2005 |
2006 |
2007 |
2005 |
2006 |
2007 |
||
Phils. |
Poverty threshold |
5,916 |
6,003 |
6,195 |
195 |
198 |
204 |
Food threshold |
3,896 |
4,024 |
4,162 |
129 |
133 |
137 |
|
NCR |
Poverty threshold |
7,859 |
7,945 |
8,061 |
259 |
262 |
266 |
Food threshold |
4,667 |
4,735 |
4,804 |
154 |
156 |
159 |
|
Source: National Statistical Coordination Board
On a general perspective, of the PhP 14,866 annual per capita poverty threshold for 2007, PhP 9,987 is for food while the difference P4,880 is for non-food needs of Juan dela Cruz. Among other provinces excluding NCR, the amount of an “economically-decent” lifestyle is highest in Abra, as it posted PhP 18,058 annual per capita poverty threshold. Of the ten provinces with the highest poverty threshold, nine are in Luzon and one in Mindanao.
Table 2. Top Ten in Provincial Annual per Capita Poverty Threshold, 2007
Provinces |
Poverty threshold |
Rank |
||||
2005 |
2006 |
2007 |
2005 |
2006 |
2007 |
|
NCR |
18,859 |
19,067 |
19,345 |
|
|
|
Abra |
16,294 |
17,468 |
18,058 |
5 |
3 |
1 |
Cavite |
17,157 |
17,595 |
18,019 |
2 |
1 |
2 |
Batangas |
17,165 |
17,583 |
18,005 |
1 |
2 |
3 |
Bulacan |
16,506 |
16,895 |
17,298 |
3 |
4 |
4 |
Pampanga |
16,377 |
16,812 |
17,214 |
4 |
5 |
5 |
Rizal |
16,114 |
16,496 |
16,887 |
7 |
7 |
6 |
Mt. Province |
16,169 |
16,499 |
16,819 |
6 |
6 |
7 |
Nueva Ecija |
15,809 |
16,201 |
16,611 |
8 |
8 |
8 |
| Davao Del Norte | 14,593 |
15,535 |
16,543 |
24 |
15 |
9 |
| Benguet | 15,653 |
16,086 |
16,508 |
9 |
9 |
10 |
Source: National Statistical Coordination Board
The poverty threshold, on the other hand, is lowest in Siquijor, at P11,663, followed by Negros Oriental, P12,012, and Cagayan, P12,479 (Table 3). Of the 10 provinces with the lowest poverty thresholds in 2007, three are in Luzon, six in the Visayas, and one in Mindanao.
Table 3. Bottom Ten in Provincial Annual per Capita Poverty Threshold, 2007
| Provinces | Poverty Threshold | Rank | ||||
| 2005 | 2006 | 2007 | 2005 | 2006 | 2007 | |
| Siquijor | 10,774 |
11,226 |
11,663 |
79 |
79 |
79 |
Negros Oriental |
10,990 |
11,532 |
12,012 |
78 |
78 |
78 |
Cagayan |
11,863 |
12,169 |
12,479 |
76 |
76 |
77 |
Zamboanga Sibugay |
11,500 |
12,083 |
12,667 |
77 |
77 |
76 |
Biliran |
12,293 |
12,409 |
12,677 |
72 |
75 |
75 |
Romblon |
12,124 |
12,491 |
12,793 |
73 |
73 |
74 |
Leyte |
12,483 |
12,468 |
12,951 |
69 |
74 |
73 |
Antique |
12,406 |
12,724 |
12,990 |
71 |
70 |
72 |
Cebu |
12,052 |
12,524 |
13,015 |
74 |
72 |
71 |
Palawan |
12,524 |
12,766 |
13,026 |
67 |
69 |
70 |
Source: National Statistical Coordination Board
Generally, families residing in urban areas need to earn 20 percent more than the income of families falling within the ridge of the poverty threshold in rural areas. Also, to meet their basic food needs for the year, residents of urban areas are expected to spend 20 percent higher than their rural counterparts.
Table 4. Annual per capita poverty thresholds for urban and rural areas, 2005-2007
| All Areas | Urban Areas | Rural Areas | Urban - Rural Difference | ||
| Level | % | ||||
2005 |
14,196 |
15,992 |
13,241 |
2,751 |
20.1 |
2006 |
14,405 |
16,429 |
13,659 |
2,770 |
20.3 |
2007 |
14,866 |
16,936 |
14,103 |
2,833 |
20.1 |
Source: National Statistical Coordination Board
These are among the highlights from the preliminary model-based estimates of the 2006 and 2007 food and poverty thresholds.
II. Notes on the methodology and estimates
The National Statistical Coordination Board (NSCB), the agency mandated to regularly generate and release the country’s official poverty statistics, annually releases food and poverty thresholds at the national, regional, and provincial levels. These thresholds are estimated upon availability of price data from the National Statistics Office (NSO) and the Bureau of Agricultural Statistics (BAS). These are deemed useful for targeting and planning purposes such as: 1) determination of minimum wage; 2) negotiations for collective bargaining agreements (CBAs); and 3) identification of beneficiaries of government programs, etc.
In line with the thrust of providing relevant, timely and accurate poverty statistics, NSCB formulated a model-based methodology of estimating food and poverty thresholds, which was approved by its Executive Board on 14 February 2007. This methodology will compute for advance estimates of food and poverty thresholds even before price data for the reference year are made available by the NSO and BAS.
The model-based methodology underwent an open and rigorous process of evaluation, refinements, and revalidation through a series of interagency discussions and consultations with the Technical Committee on Poverty Statistics, which is the body tasked to study the methodologies and estimation procedures used in generating official poverty statistics and related indicators. Further, it should be noted that given the limitations of the methodology and its data constraints, it would still be subject to further improvements and refinements as more data inputs become available. The first set of preliminary model-based food and poverty thresholds are released for the years 2006 and 2007, as discussed in Section I of this release. Final estimates for 2006, which is a FIES year, will be released in May 2007 using actual price data from NSO and BAS. On the other hand, final (model-based) estimates for 2007 is scheduled to be released after the review of the methodology in May 2010.
For inquiries, please contact Ms. Jessamyn O. Encarnacion or Mr. Art Martinez, Jr. at telephone number +632-8965390 or through e-mail addresses jo.encarnacion@nscb.gov.ph and am.martinez@nscb.gov.ph.
ESTRELLA V. DOMINGO
Officer-in-Charge
Office of the Secretary General
Contact Persons:
Ms. Jessamyn O. Encarnacion; Mr. Arturo M. Martinez, Jr.
Tel. No.: (63-2) 896-5390
E-mail: jo.encarnacion@nscb.gov.ph; am.martinez@nscb.gov.ph