GOVERNMENT economists on Wednesday drew flak from lawmakers and labor groups for what was billed as unrealistic assumptions on the Filipino family’s survival budget, with some groups daring them to live on such measly amounts to realize how wrong they are.
One major labor group, the Federation of Free Workers (FFW), also expressed concern that the controversial National Economic and Development Authority (Neda) estimates may have been trotted out to influence the regional wage boards that are now deliberating on whether or not it’s time to raise floor wages in their respective areas.
Members of the Makabayan bloc challenged the economic managers to live on a P10,000-per-month budget or roughly P25.56 each person per day, amid rising prices of basic commodities and services, which most militant sectors blamed on the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Party-list Rep. Carlos Isagani T. Zarate of Bayan Muna, Party-list Reps. Antonio L. Tinio and France L. Castro of ACT Teachers, and Party-list Rep. Arlene D. Brosas of Gabriela said P10,000 is not enough for the monthly budget of a family of five to live decently, as claimed by the Neda.
According to the Neda, a family of five can live with a P3,834 food budget, P1,288 house rent, P2,204 for water and electricity and P2,674 for transportation, health and education monthly.
“The ‘sample household budget’ of the economic managers of the Duterte administration is another PR spin meant to deodorize TRAIN and TRAIN-induced inflation and to put down the resounding calls for salary and wage hikes,” Tinio added.
According to Tinio, the real wage and purchasing power of minimum-wage earners have swiftly declined due to the record high inflation rate in May of 4.6 percent nationwide and 5.2 percent in Metro Manila. “P10,000 a month for a family of five is far from the P973 daily or P29,190 monthly cost of living for a family of five according to IBON Foundation,” he said.
Castro said the government is constantly trying to justify TRAIN 1 by saying that it is not the sole reason for the record inflation.”These economists seem to lack actual data from the ground to say that a P1,288 rent for a house that would fit a family of five exists, and a P2,674 budget for transportation, health and education is possible,” he added.
Forced diet
Brosas said by saying that one can live on P25.56 per day, the Neda is pushing Filipinos to go on a forced diet.
Meanwhile, labor groups on Wednesday tagged as “fake news” Neda’s computations.
“Talk about fake news…It’s a pity that well respected institution would resort to magic just to foster an illusion that we can buck inflation which is at its highest for the past half a decade,” Julius Cainglet of the FFW said in a statement.
“The Neda is supposed to come up with scientific, logical and research-based information to guide policy-makers, not act politicians’ mouthpiece to peddle lies about the economy,” he added.
Wage impact
Cainglet is worried that the Neda’s recent pronouncement will affect ongoing deliberations by the Regional Tripartite Wages and Productivity Boards (RTWPB) on whether minimum-wage rates must be raised in their respective areas.
“I’m sure this crazy computation is the same argument they will use to block any legislated wage increase or a wage order from the wage boards that carries a significant wage increase,” Cainglet said. Labor Undersecretary Jacinto Paras, however, said in a news conference the Neda’s figures will not be the sole factor that wage boards will consider, and they will “also consider what the employers and workers would say. So [their decision] would be balanced.”
The RTWPBs on Tuesday concluded their meeting with government economic managers to provide them technical inputs for their wage deliberations. They will now start the process of determining if there is a need for them to raise minimum- wage rates.