Kalayaan Hall, Malacañan Palace
June 11, 2024

President Ferdinand R. Marcos Jr. presided over a sectoral meeting on the proposed reforms to the Pantawid Pamilyang Pilipino Program (4Ps) cash grants at the Kalayaan Hall in Malacañan Palace.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan presented the key features of the Department of Social Welfare and Development’s (DSWD) proposed reforms to the 4Ps cash grants. The reforms focus on allocations for the First 1,000 Days (F1K), daycare and elementary, junior high school, senior high school, and health and nutrition.

To restore the purchasing power of 4Ps beneficiaries’ households, NEDA recommended adjusting the grants using the past two year’s bottom 30 percent consumer price index (CPI) as a proxy for the expected inflation over the next two (2) years.

Secretary Balisacan also highlighted the potential impacts of the proposed increments on inflation, estimated to increase by 0.03 percentage points (ppt) which is lower than the potential inflationary impact of the DSWD proposal at 0.09 ppt. Additionally, he noted that the proposed reforms would have a positive effect on fiscal resources and poverty, contributing to economic growth.

Furthermore, NEDA Secretary Balisacan discussed recommendations such as proposing an amendment to Republic Act No. 11310, revisiting the F1K cash grant proposal, and strengthening the capabilities of 4Ps beneficiaries through the implementation of specific measures.

DSWD Secretary Rex Gatchalian also explained the Department’s concurrence with NEDA’s observations, as well as counterproposal regarding the increase in 4Ps cash grants.

* * *