2003 Family Income and Expenditure Survey

12 January 2006
Philippines 2003 2000 Percent
  Increase  
  Total Income
      (In million pesos)
   2,380,854    2,187,250    8.9
  Total Expenditure
      (In million pesos)
 2,005,046  1,791,133  11.9
  Average Income
      (In thousand pesos)
 149  145  2.5
  Average Expenditure
      (In thousand pesos)
 125  119  5.4
  Number of Families *      
      (In thousands)
 16,005  15,072  6.2

 

              * based on 1995 Population Projection

Increase in total family income and expenditure seen in 2003

  • Total family income in 2003 was estimated at P2.4 trillion, increasing by 8.9 percent over the P2.2 trillion in 2000.

  • Total family expenditure reached P2.0 trillion, which was higher by 11.9 percent over the P1.8 trillion in 2000.

  • Adjusting for inflation, total family income in 2003 was worth P2.1 trillion in 2000 prices. Thus, in real terms, total family income decreased by 4.4 percent compared to that in 2000.

  • Likewise, total family expenditure in 2003 was valued P1.76 trillion in 2000 prices. This real value of the total family expenditure was lower by 1.7 percent compared to that in 2000.

  • Among regions, NCR got the biggest share of 26.9 percent (P640 billion) of the total income while Caraga and ARMM posted the least with 1.7 percent (P40 billion) each.

  • Similarly, NCR had the biggest share of the total family expenditures spent (P532 billion or 26.5%). Caraga and ARMM likewise showed the least expenditure of P34.7 billion and P33.4 billion, respectively.

Annual average income and expenditure showed upward trend

  • Average income was estimated at P149 thousand in 2003 yielding an increase of 2.5 percent compared to the 2000 level of P145 thousand. This translates to an annual growth of 0.8 percentage point.

  • Average expenditure increased from P119 thousand in 2000 to P125 thousand in 2003 posting a growth rate of 5.4 percent over the three-year period, or an annual growth of 1.8 percent.

  • The P149 thousand average income in 2003 was valued at P131 thousand in 2000 prices when the effect of inflation was removed. Similarly, the P125 thousand spent in 2003 was worth P110 thousand in 2000 prices.

  • The inflation-adjusted estimates showed a decrease of 10.0 percent in average income and a 7.4 percent decline in average expenditure.

Rising annual average income observed in regions

  • Most of the regions exhibited increases in average income between 2000 and 2003 at current prices, except for NCR, which reported a decrease.

  • NCR (P278 thousand), CALABARZON (P184 thousand) and Central Luzon (P159 thousand) were the top three regions in terms of average income, posting estimates higher than the national average.

  • ARMM registered the lowest average income among regions with P82 thousand. This was higher by 3.5 percent compared to its 2000 average income of P79 thousand.

Annual average saving declined in 2003

  • Average saving was measured in 2003 at P23 thousand, down by 10.7 percent from P26 thousand in 2000 prices. In real terms, this 2003 average saving was equivalent to P21 thousand in 2000 prices.

  • Despite the decline in average saving, families in all regions on the average earned more than they spent. NCR recorded the biggest average saving of P47 thousand while Caraga had the least with P11 thousand.

Low income families drawn towards more dissaving

  • The income decile distribution showed increasing income shares of families from the first to the ninth decile. Only families belonging to the high-income group, such as those in the tenth decile, registered a decrease of 1.6 percentage points in their income share.

  • Although the tenth decile's share decreased, still its income was 21 times the income of the bottom 10 percent.

  • Dissaving was observed in the first three deciles. The positive income trend was not enough to cover the expenditure of low-income families in the first three deciles as seen in their average dissaving (income net of expenditure) of P2 thousand for the first decile and P1 thousand for the second decile.

Less unequal income distribution in 2003

  • The 2003 Gini coefficient was recorded at 0.4660 down by 3.4 percent from 0.4822 in 2000, indicating a movement towards a less unequal income distribution among families.

  • Most of the regions registered decreases in the Gini coefficient indicating a shift towards lesser family income disparity. NCR showed the biggest decrease from 0.4451 in 2000 to 0.4130 in 2003.

Spending pattern of Filipino families moved towards lower share of food consumption expenditure

  • The share of family expenditure on food items continued to slide indicating a change in the spending pattern of Filipino families towards less spending on food. In 2003, the share of food expenditure to total expenditure was 42.6 percent, about 1.0 percentage point lower than the 2000 proportion of 43.6 percent.

  • The proportion of expenditure on food consumed at home went down from 38.6 percent in 2000 to 37.3 percent in 2003. On the other hand, higher spending on food consumed outside the home was observed as the proportion went up from 5.0 percent in 2000 to 5.3 percent in 2003 suggesting a change in the Filipino family lifestyle of regularly eating outside the home and possibly be linked to the growth of fast food chains.

  • Families spent more on transportation and communication as these expenditure were monitored to move up from 6.8 percent in 2000 to 7.4 percent in 2003.

  • Increases in expenditure share were also noted in fuel, light and water, personal care and effects, clothing, footwear & other wear, medical care, durable furniture & equipment and miscellaneous expenditures such as those for special family occasions and gifts & contributions.

  • Meanwhile, the share of expenditure on housing decreased by 0.7 percentage point from 14.3 percent in 2000 to 13.6 percent in 2003.

  (Sgd.) CARMELITA N. ERICTA
Administrator

 

 


TECHNICAL NOTES:

  • The 2003 Family Income and Expenditure Survey (FIES) is a nationwide survey of households undertaken every three years by the National Statistics Office (NSO). It is the main source of data on family income and expenditure which include among others levels of consumption by item expenditures as well as sources of income in cash and in kind. The results of FIES provide information on levels of living and disparities in income of Filipino families, as well as their spending patterns.

  • The sampling design of the 2003 FIES uses that of 2003 Master Sample for household surveys. In this design, the country�s 17 administrative regions were defined based on Executive Order 36 and 131.

  • For comparability of results, the 2000 FIES data in this release were generated using the new regional grouping. However, Isabela City was not separated from Basilan as the city was not a domain in the sampling design used for the 2000 FIES. As such, Isabela City was included as part of Basilan which was under Region IX in 2000. In 2003, Isabela City (Basilan) is grouped under Region IX while the rest of the province of Basilan (excluding Isabela City) is grouped under ARMM.

  • In 2000 Marawi City was a separate domain under Region XII. In 2003, with the use of the new master sample, Marawi City became part of ARMM together with the rest of Lanao del Sur.

  • To be able to compare the 2003 FIES estimates with the 2000 FIES results in real terms, the effects of inflation have to be removed. For comparative purposes, the Consumer Price Index (CPI) is used to deflate the 2003 FIES estimates. The country's CPI for 2003 is estimated at 113.9.

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