Philippines' Growing Cash Aid Reliance Questioned Amid Poverty Alleviation Debate

SOCIAL Welfare Secretary Rexlon T. Gatchalian on Tuesday defended the government’s expanding cash assistance programs, saying the increase in subsidies’ budget reflects the need to protect vulnerable families from economic and other shocks rather than a failure of its poverty alleviation strategy. Mr. Gatchalian made the remarks during a House of Representatives Appropriations Committee hearing on the Department of Social Welfare and Development’s (DSWD) proposed 2027 budget, following Rep. Antonio Tinio’s concerns over the department’s subsidy spending, which rose 152% to P184 billion in 2026 from P73 billion in 2016. Mr. Tinio asked whether the government was relying too heavily on cash assistance instead of creating jobs and sustainable livelihoods. Mr. Gatchalian said in response that the DSWD considers the Pantawid Pamilyang Pilipino Program (4Ps) an “investment in human capital” rather than simply ayuda, noting that beneficiaries are required to meet conditions related to education and other interventions. He noted 1.77 million families have already graduated from 4Ps into self-sufficiency, although many remain vulnerable to shocks such as illness, death in the family and natural disasters. Mr. Tinio, however, pointed to the contrasting budget trends for the DSWD’s assistance and livelihood programs. He said the Sustainable Livelihood Program (SLP), which is intended to help beneficiaries transition toward self-sufficiency, saw its budget decline by about 45% over the decade, from nearly P10 billion to less than P6 billion. Mr. Gatchalian said the department had repeatedly sought additional funding for SLP. Mr. Tinio also flagged the sharp increase in Assistance to Individuals in Crisis Situations (AICS) funding, which increased to P63.9 billion in 2026 from P700 million in 2016. He said this could make government assistance more vulnerable to political patronage. Mr. Gatchalian rejected the characterization, saying AICS beneficiaries still undergo screening by social workers despite referrals from government officials and other groups. He attributed the increase in demand for assistance to the lingering effects of the COVID-19 pandemic, inflation and repeated natural disasters, which he said have pushed vulnerable families back toward poverty. — Pexcel John Bacon