NEDA says reducing poverty rate to 14% by 2022 is ‘achievable’

The Philippines’ target of reducing poverty rate before the end of President Rodrigo Duterte’s term in 2022 is still attainable despite the economic challenges brought by the COVID-19 pandemic this year, the National Economic and Development Authority (NEDA) said Thursday.

“From 23.5% in 2015, the poverty rate fell significantly to around slightly below 17% in 2018. Despite the COVID-19 and the impact on the people this year we are still seeing our achievement of 14% by 2022,” Acting Socioeconomic Planning Secretary and NEDA chief Karl Kendrick Chua said in a virtual press briefing.

Chua said a 14% poverty rate means that some six million Filipinos were lifted out of poverty.

The World Bank earlier said that the economic contraction in 2020 due to the COVID-19 crisis is likely to increase poverty in the short-term, resulting in 2.7 million million additional poor people this year. 

The NEDA chief has said that key in economic recovery will be to open more of the economy to see income sources return.

The Philippines has been under lockdown for nearly nine months, after the first restrictions were implemented in March to curb the spread of COVID-19. A general community quarantine (GCQ) has remained in place in Metro Manila and other key areas, and was extended to last until the end of the year.

“More safe and gradual reopening of the economy and the effective implementation of this package of recovery programs — budget for 2020 and Bayanihan 2 that were extended; the 2021 budget, FIST and CREATE. All these will help us achieve our target,” Chua said.

The FIST or Financial Institution Strategic Transfer bill has been ratified by the Senate on Tuesday, December 15, 2020. 

The measure seeks to create specialized asset-managing corporations that would acquire bad loans and stagnant properties from embattled financial institutions.

Meanwhile, the CREATE or Corporate Recovery and Tax Incentives for Enterprises bill has been approved by the Senate on third and final reading last month.

The bill seeks an outright reduction in corporate income tax rate from the current 30% starting July 1, 2020 by amending the National Internal Revenue Code.

The FIST and CREATE bills are economic measures certified urgent by Malacañang amid the COVID-19 pandemic. — RSJ, GMA News