by Greg G. Deligero
Families in Davao City, the least poor city in the Davao region, spend more money on food and house rental than on any other household expenditure for personal consumption, according to disegregated data on the Family Income and Expenditure Survey (FIES) recently released by the Regional Statistical Coordination Committee of the Regional Development Council 11. The committee has requested the National Statistics Office (NSO) for the special tabulation of FIES in Davao City which had always been lumped as part of Davao del Sur in the Philippine Statistical System. FIES is the main source of income and expenditure data in the Philippines. It is a nationwide survey of households conducted regularly by the NSO to gather data on family income and family living expenditure and related information affecting income and expenditure levels and patterns; determine the sources of income and income distribution, levels of living and spending patterns, and the degree of inequality among families; provide benchmark information to update weights in the estimation of consumer price index (CPI); and provide inputs in the estimation of the country’s poverty threshold and incidence. The data are vital to planning in the evaluation of economic development and formulation of welfare-oriented policies. Expenditures According to the disaggregated data, food comprised 44.5% of the total family expenditures Davao City. The average annual family expenditure in the city is P179, 099 or P155, 492 for the families in the lower class and P202, 706 for the families in the upper class. Family expenditures refer to the expenses or disbursements made by the family purely for personal consumption. They exclude all expenses in relation to farm or business operation, investment ventures, purchase of real property and other disbursements which do not involve personal consumption. Food expenditure includes the food consumed at home and regularly consumed outside the home by the family members. Food consumption covers only the actual consumption of the family, its household helpers as well as persons employed by the family to do odd jobs around the house, and family guests. House rental Next to food is house rental which corners 14.1% of the family expenditures, followed by transport and communication with 8.5% and fuel light and water with 6.8%. Davao City families spend more money for personal care and effects which corners 3.6% than educational fees with 3.3% and medical care with 2.5%. Clothing , footwear and other wear comprise 2.4% followed by durable furniture and equipment and special family occasion both at 2.3%, and gifts and contribution with 1.1%. Families in Davao City have the same amount of spending for alcoholic beverages, tobacco and taxes with 0.9% each. While house rental corners sizeable portion of the family expenditures, house maintenance and repairs is the third lowest subject of expenditure with only 0.6% followed by recreation with 0.4% and non-durable furnishings with 0.2%. Family income In terms of family income, families in Davao City earn an average annual income of P215, 738 or P183, 244 for the families in the lower class and P248, 231 for the families in the upper class. Family income includes primary income and receipts from other sources received by all family members as participants in any economic activity or as recipients of transfers, pensions and grants Following the International Labor Organization concept of income, the FIES excludes profits from the sale of stocks and bonds, back pay and proceeds from insurance, net winnings from gambling, sweepstakes and lotteries and inheritance as part of family income. Salaries and wages comprise 58.5% of the income of families in Davao City. Salaries and wages from employment include all forms of compensation whether in cash or in kind received by family members who are regular or occasional/seasonal workers in agricultural and non-agricultural industries. Entrepreneurial activities corners 20.9% of the income. These include crop farming and gardening, livestock and poultry raising, fishing, wholesale and retail, manufacturing, transport and communication and construction. Other sources The remaining sources of income are lumped as income from other sources which include imputed rental values of owner-occupied dwelling units, interests, rentals including landowner’s share of agricultural products, pensions, support and the value of food and non-food items received as gifts by the family as well as the imputed value of services rendered free of charge to the family. If the average annual family income is computed against the average family expenditures, families in Davao City posted an average surplus of P36, 636. The surplus among families in the lower class totaled P27, 752 while among families in the upper class have a surplus of P45, 525. Least poor Davao City is the least poor city in the Davao region, according to the National Statistical Coordination Board (NSCB). The poverty incidence in Davao City is put at only 14.87 followed by Tagum City, with 15.42, Digos City, with 18.22, Panabo, with 22.74, Mati, with 32.14 and Igacos, with 44.48, the highest among the cities. Poverty incidence is proportion of families/population whose annual per capita income falls below the annual per capita poverty threshold to the total number of families/population while the poverty threshold is the annual per capita income required or the amount to be spent to satisfy nutritional requirements (2,000 Kcal) and other basic needs. The annual per capita income in Davao City is P8, 629 obtained by dividing the total family income by the average of five members per family.
