NATIONAL Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the decline in poverty rate in 2023 shows promising signs of inclusive government efforts to reduce poverty across the regions and provinces.

In a statement late Thursday, Balisacan noted, however, that despite the decline, the government will continue to address the root causes of poverty and make sure that the reduction will be sustained.

"While there is reason for optimism the report shows an overall decrease in poverty incidence it is important to remember that poverty is a multifaceted issue requiring sustained and coordinated efforts to address.

Its cost to the nation is enormous, and we treat it with utmost seriousness," the NEDA chief said.

Data recently released by the Philippine Statistics Authority showed that the national poverty rate declined to 15.5 percent in 2023 from 18.1 percent in 2021.

Poverty incidence also significantly decreased in 11 out of the 18 regions of the country last year.

"These figures are encouraging but underscore the complexity of the issue at hand," Balisacan said.

In his statement, he also addressed the misconceptions about the food and poverty threshold.

In 2023, the amount needed to meet the basic food and nonfood needs of a family of five, or the poverty threshold, was set at P13,873 per month.

The amount needed by a family of five to meet their basic food needs per month or the food threshold was P9,581.

"We recognize that poverty pertains to a state of deprivation and an individual's perception of the quality of life they enjoy compared to their aspirations. The food threshold represents the cost of a food bundle that meets the energy and micronutrient requirements of the average Filipino," Balisacan said.

He said these thresholds are part of a broader set of tools used to assess the country's development progress and measure the effectiveness of the government's policies and programs in addressing poverty.

"They are not, and were never intended to be, prescribed budgets for a decent standard of living. They do not dictate how much a family should spend on food nor do they provide an idea of a desirable household budget," said Balisacan.

"Let me emphasize that poverty is more than just needing more income to meet these thresholds. Statistics help give us a sense of scale. Behind these statistics and tools are people living in a state of deprivation, struggling to get through each day with hopes and dreams for a better life," he added.

Balisacan assured that the government, together with various sectors of society, is working tirelessly to address the root causes of poverty through a range of social protection programs, policy reforms, and development initiatives.

The government, he said, would focus on sustaining the momentum of poverty reduction to meet the target of reducing poverty to a single-digit level by 2028.