‘Cash transfer program can increase income of poor by 12.6%’

MANILA, Philippines – The Philippines’ conditional cash transfer (CCT) program could increase annual incomes of beneficiaries by 12.6 percent, resulting in the reduction of poverty incidence by 6.2 percent, simulations by the World Bank (WB) and the Australian Agency for International Development (AusAID) showed.

The results of the simulations were published in the Social Protection Note 3 titled “Welfare and Distributional Impacts of the Pantawid Pamilyang Pilipino Program” released recently by the two development partners.

An in-depth evaluation of the country’s CCT Pantawid Pamilya program is ongoing, but simulations using the rich database of the National Household Targeting System could already be done to show the potential impacts on poverty in program areas, the report said.

It said on average, pre-CCT annual per capita incomes of Pantawid Pamilya are equivalent to P9,205 ($219), way below the national poverty line of P16,841 ($401) in 2009.

On average, Pantawid Pamilya beneficiary households in program areas receive an annual cash transfer of P6,200 ($148) from the program.

With an average family size of five, this translates to a 12.6 percent increase in their total household income.

“A 12.6 percent increase in the incomes of beneficiary households can reduce the poverty incidence by 6.2 percentage points among them,” the report said.

“In program areas, the poorest areas of the country where CCT is implemented, Pantawid Pamilya can reduce poverty incidence by 2.6 percent and inequality by 6.6 percent.” –(The Philippine Star)