Toward proverty reduction

By Atty. Jose Ferdinand M. Rojas II / RISING SUN

A STATEMENT from Malacañan Palace on the proposed 2013 budget revealed the key goals of the Aquino administration: accountability, equitable growth and transparency.

“Empowerment” is another significant keyword, to provide Filipinos with the “services, skills and resources that will help lead them to a better life.”

Regarding the proposed 2013 national budget of P2.006 trillion, more than a third, or P698.4 billion, has been earmarked for social services such as health, education and social welfare. Among the top priorities is the Pantawid Pamilyang Pilipino Program, or 4Ps, of the Department of Social Welfare and Development, in order to reduce the incidence of poverty to 16.6 percent by 2016.

A self-rated hunger survey of the Social Weather Stations shows that for the first time since June 2011, the “number of Filipino families experiencing hunger has dropped below the 20 percent mark,” according to an announcement from the Human Development and Poverty Reduction Cabinet Cluster.

A survey in May shows that the number declined to 3.8 million households from the 4.8 million households listed in March. Consistent with this, says the SWS, are their other findings that show the proportion of food-poor families declined to 39 percent from 45 percent.

The decline in hunger is attributed to “improved [overall] economic conditions” and “vigorous efforts on the part of government to fight poverty and hunger,” which have led to the lowering of self-rated hunger to 18.4 percent.

The overall hunger rating dropped from 28 percent to 14.3 percent in Luzon and from 24.3 percent to 16 percent in Metro Manila.

There was an increase in the figures from the Visayas (a rise of 7.7 percent to 15 percent) and in Mindanao (to 22.3 percent from 20 percent previously). This is a result of “several natural calamities that have devastated these regions” and the “complex rehabilitation process required once emergency work ends and the rebuilding of communities begins.”

Also cited as a retarding factor in the fight against hunger is the “protracted conflict in Mindanao which limits the access to food for many displaced families.”

The government, while pleased with the “short-term spikes” that are “encouraging,” asserts that the goal is to achieve long-term results. Among the government’s social programs that address hunger are the DSWD’s 4Ps, the Supplemental Feeding Program, and the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (Kalahi-CIDSS).

Also in line with this and with food security goals, President Aquino recently announced that “We expect to be self-sufficient in rice by next year, if not, be the exporter of rice by next year.”

The reduction of poverty is possible with expanded economic growth that can maintain a low inflation rate, which is a “crucial factor in perceiving hunger because it dictates the prices of basic commodities.” At present, according to the Bangko Sentral, inflation is at 2.9 percent.

In addition, economic indicators are looking good. Several global ratings agencies have issued ratings or outlook upgrades over the past several months, bringing us closer to the coveted investment-grade status. First- quarter growth hit an impressive 6.4 percent. Foreign direct investments have increased by an impressive 258 percent through the strong showing of the real estate and manufacturing sectors.

The unemployment rate has decreased, according to the SWS, to 26.6 percent in May from 34.4 percent in March. To boost the economy, government spending on social services this year reached P567.9 billion or 31 percent of the entire national budget.

Meanwhile, the Bureau of Internal Revenue (BIR) announced that their agency has exceeded their June 12 collection target by 7.88 percent.

They collected P81.34 billion in tax revenues, surpassing by P14.44 billion, or 21.58 percent, the collection for the same period last year. The amount collected is higher by P5.94 billion than the BIR’s June 2012 revenue goal of P75.4 billion.

The improved collection was attributed to double-digit growth collections from the regional offices, which posted a total of P28.09 billion for June 2012, P5.72 billion more than the amount collected in June 2011, an increase of 25.58 percent, and surpassing the June 2012 revenue goal by 8.63 percent.

For the first half of the year, BIR revenue collection expanded by 13.79 percent, or P63.16 billion, compared to the same period last year.

This is a substantial increase and can be credited to President Aquino’s anti-corruption reforms.

All these economic indicators are optimistic signs. We need to sustain the gains that have been made, and this can be accomplished through government accountability and transparency with efforts focused on equitable growth.

With the private sector likewise doing its share for growth and development, we can hope to see a significant reduction in the incidence of poverty in the next few years.

Comments? Send an e-mail to jrojas@pcso.gov.ph.