Mendicancy – Not A Substitute for Enduring Prosperity

by Crispin Fernandez, MD

| Photo by Mara Rivera on Unsplash

Social welfare programs – 4Ps, AKAP, AICS, MAIP, TUPAD – in the Philippines are fragmented and based on patronage politics.

The Pantawid Pamilyang Pilipino Program (4Ps) is a national poverty reduction strategy that provides conditional cash grants to poor and near-poor households. It focuses on investing in the health, nutrition, and education of children aged 0-18. Beneficiaries eligible for cash grants include the following conditionalities: (1) Pregnant women availing of pre-natal services, giving birth in a health facility, and receiving post-partum care. (2) Children aged 0-5 receiving regular health and nutrition services and undergoing check-ups and vaccinations. (3) Children aged 1-14 availing deworming pills twice a year. (4) Children aged 3-4 attending day care or pre-school classes with at least 85% attendance. (5) Children aged 5-18 attending elementary or secondary school with at least 85% attendance. (6) A responsible household member attending monthly Family Development Sessions (FDS). Target beneficiaries are the poor and near-poor households with children aged 0-18 or with pregnant members at the time of registration. It includes farmers, fisherfolk, homeless families, indigenous peoples, and informal settlers in geographically isolated and disadvantaged areas. As of February 2025, the 4Ps program has benefited over 4.05 million households.

The Ayuda sa Kapos ang Kita Program (AKAP) is the program that provides financial assistance to individuals whose income does not exceed the statutory minimum wage and who are significantly affected by rising inflation. It serves as a targeted social assistance for those who may not be eligible for the poorest population-focused programs like 4Ps. AKAP can provide financial assistance for medical, funeral, transportation, education, food, or other support services based on the individual’s assessed needs. Assistance can be in the form of outright cash or in-kind. Target Beneficiaries are low-income individuals, particularly minimum wage earners, who are not necessarily the poorest of the poor but are still vulnerable to economic shocks like inflation. AKAP is implemented by the Department of Social Welfare and Development (DSWD) through its Crisis Intervention Units (CIUs) and Social Welfare and Development (SWAD) Offices, and potentially through Local Government Units (LGUs). The General Appropriations Act (GAA) of 2025 allocated P26.7 billion for the AKAP program. The financial assistance can range from PHP 1,000 to PHP 10,000, subject to the assessment of a DSWD social worker.

Assistance to Individuals in Crisis Situations (AICS) is a program by the DSWD that provides immediate and temporary support to individuals and families facing crises or unexpected life events. It acts as a social safety net to help them meet their basic needs and recover from difficult situations. AICS offers financial, material, psychosocial support, and referrals to other services. Financial and material assistance can include support for (1) transportation for returning home, seeking medical interventions elsewhere, or attending to family emergencies. (2) medical assistance to help with hospitalization expenses, medicines, treatments, and laboratory procedures (excluding normal birthing). (3) Funeral: Assistance for burial expenses. (4) Educational support for school-related costs. (5) Food provision during crises. (6) Cash relief as general financial aid to address immediate needs. Target beneficiaries are Individuals and families affected by various crises, including illness, death of a family member, natural or human-induced disasters, and other emergencies.

In 2022, the AICS program became more accessible, potentially reaching middle-class individuals or families facing significant financial strain due to a crisis. Also in 2022, AICS served the highest number of clients in the past five years, reaching millions of individuals.

The Department of Budget and Management (DBM) approved an additional P3 billion in November 2023 to sustain the AICS program.

The Medical Assistance for Indigent and Financially Incapacitated Patients (MAIP) provides financial assistance to indigent and financially incapacitated patients who struggle to afford healthcare costs. The aim is to ensure that healthcare is accessible to all Filipinos, especially the vulnerable. MAIP covers various medical services, including essential and life-saving medications, consultation fees, laboratory tests and diagnostic procedures, hospitalization expenses (typically ward-based accommodation), inpatient and outpatient care, emergency services, and professional fees. Beneficiaries include indigent patients, those without visible means of income or whose income is insufficient for their family’s basic needs, as determined by the DSWD, financially incapacitated patients, individuals who may not be classified as indigent but still cannot afford necessary medical care due to the high costs of treatment. Primary implementation is through government hospitals, with the Department of Health (DOH) as the implementing agency. The Office of the Vice President (OVP) also provides medical assistance through Guarantee Letters with partner service providers, potentially utilizing MAIP funds. The Marcos Jr. administration significantly increased the budget for MAIP, allocating P58 billion in 2024, a substantial rise from the P32.6 billion in 2023. President Marcos Jr. has directed the DOH to work towards providing universal free hospitalization in all public hospitals by the end of his term, with MAIP playing a vital role in achieving this.

These programs represent significant components of the Philippine social welfare system, each targeting different aspects of poverty and vulnerability. 4Ps focuses on long-term human capital development for the poorest families, AKAP addresses the immediate needs of low-income individuals affected by inflation, AICS provides crucial support during crises, and MAIP ensures access to essential healthcare for those who cannot afford it. While specific cost figures for each program are not detailed in the provided information, the substantial budget allocated to AKAP and MAIP indicates the government’s commitment to these social welfare initiatives.

“These steps make poverty palatable and serve the dual purpose of ingratiating the politician to the impoverished. It all boils down to control. A prosperous population is less likely to succumb to these measures and their true purpose – the next election.”

The Pantawid Pamilyang Pilipino Program (4Ps) 2025 budget is approximately PHP 114 billion. This amount is an increase of about 8 percent from the PHP 106.35 billion allocated in the 2024 General Appropriations Act (GAA).

The 4Ps program is the largest government conditional development investment aimed at uplifting the poor’s lives and breaking the generational poverty cycle.

The budget will cover financial aid, rice subsidies, additional support services, operational costs, and program salaries.

Eligible families will receive education, rice, health grants, livelihood assistance, and health services through PhilHealth.

The Department of Social Welfare and Development (DSWD) has been allocated a total of PHP 230 billion for 2025, with PHP 205.5 billion specifically for implementing its social assistance programs, a significant portion of which is for 4Ps. The proposed budget also includes funding for the “First 1000-day grant,” which will provide additional cash grants to pregnant and nursing mothers who are 4Ps beneficiaries to support the health and nutrition of their children during their first 1,000 days.

However, it’s important to note that there have been reports of a significant cut to the 4Ps budget in the final signed 2025 national budget. Some sources indicate a reduction of PHP 50 billion from the initially proposed amount. Progressive groups concerned about the impact on the program’s beneficiaries have criticized this potential reduction.

Therefore, while the initial allocation was PHP 114 billion, the final implemented budget for 4Ps in 2025 might be lower due to these reported cuts.

The Philippines’ General Appropriations Act (GAA) 2024 has allocated P32.72 billion for livelihood and employment programs. This funding supports initiatives under the Department of Labor and Employment (DOLE), such as the (1) Tulong Pang-hanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD)– A P28.867 billion allocation for temporary employment programs targeting informal sector workers, (2) DOLE Integrated Livelihood Program (DILP) – also known as the Kabuhayan Program, this initiative received P2.352 billion to assist marginalized workers, including self-employed individuals and displaced workers, (3) JobStart Philippines Program – A P46.021 million allocation to help unemployed youth gain skills and internships. (4) Special Program for Employment of Students (SPES)** – P488.198 million set aside to provide temporary jobs for needy students. (5) Government Internship Program (GIP) – P707.716 million allocated to offer internship opportunities for young individuals aged 18-30.

These programs are in addition to provincial, city, and municipal programs working within fiefdoms that act in concert to feed the endless train of patronage politics that do little, if anything, in solving the root cause of this patchwork of band-aids and tourniquets. These steps make poverty palatable and serve the dual purpose of ingratiating the politician to the impoverished. It all boils down to control. A prosperous population is less likely to succumb to these measures and their true purpose – the next election. Total spending is around 5% of programmed GAA spending, excluding Php1.5 trillion of unprogrammed budget line items. How many jobs could Php250B, currently earmarked for handouts, generate? That is the policy question.

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ABOUT THE AUTHOR: Dr. Crispin Fernandez advocates for overseas Filipinos, public health, transformative political change, and patriotic economics. He is also a community organizer, leader, and freelance writer.

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