The National Economic and Development Authority (NEDA) has come under scrutiny after revealing that spending more than P64 per day on three meals means a person is no longer considered “food poor” in the Philippines. This threshold, used to classify the country’s poorest, has sparked debate among lawmakers and experts who question its relevance in today’s economic climate.
During a Senate finance committee hearing on the proposed 2025 national budget, Senator Nancy Binay pressed NEDA chief Arsenio Balisacan on how the government determines the food-poor threshold. Balisacan explained that as of 2023, the monthly food budget for a family of five is P9,581, which translates to roughly P64 per person per day.
“Yes, that amount is supposed to cover three meals,” Balisacan confirmed when Binay asked for clarification. The senator then raised concerns about whether P20 per meal is realistic, considering current food prices.
Balisacan acknowledged that the food basket, which forms the basis of this threshold, has not been updated in over a decade. “The value has been adjusted for inflation, but it’s time we revisit this basket, given the changes in our economy,” he said.
The NEDA chief added that keeping the threshold constant has been useful in measuring the effectiveness of poverty reduction programs, but he conceded that economic growth and shifting consumer preferences might require a re-evaluation.
Senator Grace Poe, chair of the panel, echoed the need for adjustments, suggesting that the current threshold may no longer reflect the true cost of living. “There are certain things that need to be reexamined to ensure that our poverty metrics are still workable,” she stated.
As the food-poor threshold continues to rise—from P55 in 2021 to an expected P67 by 2024—questions linger about whether the existing criteria truly capture the financial realities faced by many Filipinos. Balisacan emphasized that the current food basket, determined by health and nutrition agencies, was designed to meet basic nutritional needs but acknowledged that it might no longer align with today’s economic environment.
