Bolsonaro manages to approve increase in social spending

Bolsonaro manages to approve increase in social spending

July 14, 2022, 4:00 AM

July 14, 2022, 4:00 AM

The Brazilian Congress yesterday approved a battery of measures proposed by the Government of Jair Bolsonaro that increases expenses and creates new social benefits until the end of the year, in an attempt, according to analysts, to improve the president’s popularity 81 days before the elections.

The Chamber of Deputies gave the green light to the text, which decrees a “state of emergency” to circumvent the electoral law.

Government will disburse more than 41,000 million reais (about US$ 7,600 million) in measures that will be in force until December.

Among other benefits, the Government will increase by 50%, from 400 to 600 reais (about 110 dollars) per month, the Aid to Brazil program, former Bolsa Familia, created by former leftist president Luiz Inácio Lula da Silva.

Also, will create aid for truck drivers of 1,000 reais per month ($185), will expand aid to the poorest to buy gas cylinders and establishes new aid to taxi drivers, in the midst of a rebound in energy prices.

The measures, included in a draft constitutional amendment (PEC), were described by analysts as “PEC Kamikaze”due to the risk to the balance of public accounts.

Critics of Bolsonaro have questioned the legality of the PEC, that in addition to circumventing the “expenditure ceiling” rule that prevents the Government from spending above inflation, it could violate the Brazilian law that prevents the Executive from granting new benefits in an election year.

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