Households living just above the poverty line — the "near-poor" — should be the next candidates for priority government assistance, a Department of Finance official said, speaking in his personal capacity at a lecture series organized by the Foundation for Economic Freedom (FEF).

Undersecretary Karlo Fermin S. Adriano told the FEF's Paderanga-Varela Memorial Lecture that aid for the near-poor shields them from rising food costs and prevents various economic shocks from pushing them below the poverty line. He framed support for this segment as a short-term priority, highlighting the vulnerability of households with limited financial buffers. By definition, these households clear the official poverty threshold but generally sit outside assistance targeted strictly at the poor, a gap that becomes acute when prices climb.

Mr. Adriano noted that his views do not necessarily represent the position of the Department of Finance.

"You have to augment the income of the 4Ps and we're already doing that," he said, referring to the cash assistance extended under the Pantawid Pamilyang Pilipino Program (4Ps). The 4Ps is the country's flagship conditional cash transfer program, institutionalized by law in 2019, which grants cash to poor households on condition that children stay in school and family members avail of regular health checkups.

He added that even middle-income households could struggle to absorb unexpected expenses. Citing a study by the Philippine Institute for Development Studies, he said 1.34 million Filipinos could be pushed into poverty by rising global oil prices stemming from the Middle East conflict. The Philippines imports nearly all of its fuel requirements, so global oil price movements feed into domestic transport and food costs that weigh on household budgets.

"Many Filipinos, particularly the middle-income class, are one sickness or hospitalization away from poverty. So there is really, there's not much of a buffer even for the middle class," he said.

"The single-digit poverty level in 2025 is at risk because of these external shocks. Hence, we need to do something," he added. Bringing poverty incidence down to a single digit has been a headline goal of the government's development agenda, making shocks that erode household incomes a direct risk to that target.

To strengthen middle-income households' purchasing power, Mr. Adriano also called for the passage of the proposed Promoting Growth, Revenue, and Equity towards Socio-Economic Sustainability tax reform package. "The goal is to increase the disposable income of the middle-income earners while promoting a healthier lifestyle and strengthening the health system," he said. The proposed package would reduce personal income taxes for minimum- and middle-wage earners while raising excise taxes on alcohol, vapes, and junk food — a structure designed to lift take-home pay while discouraging unhealthy consumption, with the measures needing congressional passage before taking effect.

He placed the tax measure among his medium-term recommendations for addressing food affordability, linking household purchasing power to the ability to maintain a healthy diet.

Both income assistance and tax reform address limited earnings, an issue Mr. Adriano said deserves greater attention.

— Justine Irish D. Tabile