SOCIAL REFORM AND POVERTY ALLEVIATION ACT

Case Overview and Summary

SUMMARY OF REPUBLIC ACT NO. 8425

Declaration of Policy (Section 2):
- Adopt area-based, sectoral and focused intervention to poverty alleviation.
- Pursue asset reform or redistribution of productive economic resources to basic sectors.
- Institutionalize and enhance the Social Reform Agenda (SRA).
- Adopt principles and strategies for national framework integrating structural reforms and anti-poverty initiatives.

Definition of Terms (Section 3):
- Defines terms like "basic sectors", "microfinance", "minimum basic needs", "poverty alleviation", "social reform", etc.

Adoption and Integration of Social Reform Agenda (Section 4):
- National Anti-Poverty Action Agenda to include core principles and programs of SRA.
- SRA to have multi-dimensional approach (social, economic, ecological, governance).
- Sector-specific and cross-sectoral flagship programs outlined.

National Anti-Poverty Commission (NAPC) (Sections 5-9):
- NAPC created under Office of the President as coordinating and advisory body for SRA implementation.
- Composition, powers and functions of NAPC outlined.
- NAPC to have Secretariat for technical and administrative support.

People's Development Trust Fund (PDTF) (Sections 10-11):
- PDTF of ₱4.5 billion established, funded from PAGCOR earnings and other sources.
- PDTF earnings to be used for microfinance institutional development and capability building.

Role of Local Government Units (LGUs) (Section 12):
- LGUs to formulate, implement, monitor and evaluate National Anti-Poverty Action Agenda locally.

Microfinance Program (Sections 13-17):
- Integration and enhancement of existing microfinance programs.
- People's Credit and Finance Corporation (PCFC) as vehicle for microfinance services for the poor.
- Increase in PCFC capitalization from ₱100 million to ₱2 billion outlined.
- Special credit windows for the poor in government financial institutions mandated.
- Provisions for PCFC privatization.

Appropriations (Section 18):
- ₱100 million appropriated as initial operating fund for NAPC.
- ₱4.5 billion appropriated over 10 years for PDTF from PAGCOR earnings.
- ₱500 million appropriated over 4 years for increase in PCFC capitalization.

Transitory Provisions (Sections 19-22):
- Temporary exercise of NAPC powers by Social Reform Council.
- Formulation of implementing rules and regulations within 6 months.
- Transfer of assets, liabilities and personnel from abolished commissions to NAPC.
- Repealing, separability and effectivity clauses.