Brazil’s Lula announces welfare increases ahead of presidential election

Government says that increase represents an adjustment for inflation that has eaten away purchasing power since 2023.

Brazilian President Luiz Inacio Lula da Silva at Planalto, who is up for reelection, says his flagship poverty alleviation programme has 'changed the lives of millions of Brazilians' [File: Eraldo Peres/AP Photo]

Brazilian President Luiz Inacio Lula da Silva’s government has announced a 15 percent increase in welfare benefits ahead of a closely watched presidential election in October.

The leftist president was joined by government ministers in the capital Brasilia on Thursday, where they announced that the “Bolsa Familia” poverty alleviation programme would increase minimum monthly benefits from 600 reais ($116) to 691 reais ($134) next month.

list 1 of 3 Brazil’s Flavio Bolsonaro to institute debt ceiling if elected president

list 2 of 3 Last dance? Inside Lula’s strategy to win a fourth presidency in Brazil

list 3 of 3 Flavio Bolsonaro faces corruption probe weeks before Brazil election

“This is a programme that has changed the lives of millions of Brazilians,” Lula said in a social media post, stating that the adjustment was meant to counter the impacts of inflation which has risen since 2023.

“It’s income to put food on the table. It’s money circulating in the economy. It’s more dignity for Brazilian families,” he added.

Lula is currently facing a challenge from the political right by presidential candidate Flavio Bolsonaro , the son of former far-right president Jair Bolsonaro. Polls have shown them virtually tied ahead of the first round of voting on October 4.

The leftist president has faced challenges from rising debt servicing costs. Finance Minister Dario Durigan said the current budget would cover the benefit increase without creating additional expenses.

Planning Minister Bruno Moretti added that higher cash benefits would allow people to maintain their purchasing power amid rising costs.

“Inflation since the [March] relaunch of the programme through August stands at 15.04 percent,” Moretti said.

Benefit adjustments are allowed in Brazil, and conservative governments in the past have also overseen increases in the months leading up to elections. Before the 2022 presidential election Jair Bolsonaro boosted cash payments, totalling about 273 billion reais ($52bn) in 2022 and 2023, according to an analysis by the Reuters news agency.

The new financial aid increase is expected to cost the government 5.8 billion reais ($1.13bn) in 2026 and 22 billion reais ($4.27bn) in 2027.

The Bolsa Familia programme has been a central legacy of Lula and his Workers’ Party, part of Lula’s vision of pairing political democracy with social and economic policies that seek to address poverty and inequality.

Households with a monthly income of 218 reais ($42) qualify for the programme, which offers assistance to millions of poor families across the country.

In an interview published in the Brazilian newspaper Extra, Durigan also stated that the government was considering a debt relief proposal meant to decrease strain on borrowers.

“It is about making it possible for people who today have more jobs, more income and greater access to quality services to start over,” he was quoted as saying.

政府表示，这一增长是对自 2023 年以来不断侵蚀购买力的通货膨胀的调整。

巴西总统路易斯·伊纳西奥·卢拉·达席尔瓦在普拉纳尔托表示，他领导的扶贫计划“改变了数百万巴西人的生活”。卢拉总统正在竞选连任。[图片：埃拉尔多·佩雷斯/美联社照片]

在备受关注的10月总统大选前夕，巴西总统路易斯·伊纳西奥·卢拉·达席尔瓦的政府宣布将福利金提高15%。

周四，左翼总统与政府部长们在首都巴西利亚共同宣布，“家庭补助金”扶贫计划将于下个月将最低月补助金从 600 雷亚尔（116 美元）提高到 691 雷亚尔（134 美元）。

巴西总统弗拉维奥·博索纳罗若当选将推行债务上限（共3项）

列表 2/3：最后的舞蹈？卢拉赢得第四个巴西总统任期的策略内幕

名单3/3：弗拉维奥·博索纳罗在巴西大选前几周面临腐败调查

卢拉在社交媒体上发帖称：“这项计划改变了数百万巴西人的生活”，并表示此次调整旨在抵消自 2023 年以来不断上升的通货膨胀的影响。

“这是养家糊口的收入，是经济中的资金流通，也是巴西家庭的尊严所在，”他补充道。

卢拉目前正面临来自右翼政治势力的挑战，对手是总统候选人弗拉维奥·博尔索纳罗，他是前极右翼总统雅伊尔·博尔索纳罗之子。民调显示，在10月4日首轮投票前，两人的支持率几乎不相上下。

这位左翼总统面临着不断上涨的债务偿还成本带来的挑战。财政部长达里奥·杜里根表示，目前的预算足以支付福利增长，而不会增加额外支出。

规划部长布鲁诺·莫雷蒂补充说，提高现金福利将使人们能够在物价上涨的情况下维持购买力。

莫雷蒂表示：“自[3月]该计划重新启动以来，截至8月份，通货膨胀率为15.04%。”

巴西允许调整福利，过去的保守派政府也曾在选举前几个月提高福利。据路透社分析，在2022年总统大选前，雅伊尔·博索纳罗提高了现金补贴，2022年和2023年总额约为2730亿雷亚尔（约合520亿美元）。

预计新的财政援助增加将使政府在 2026 年花费 58 亿雷亚尔（11.3 亿美元），在 2027 年花费 220 亿雷亚尔（42.7 亿美元）。

“家庭补助计划”一直是卢拉及其工人党的核心遗产，也是卢拉将政治民主与旨在解决贫困和不平等的社会经济政策相结合的愿景的一部分。

月收入为 218 雷亚尔（42 美元）的家庭有资格参加该计划，该计划为全国数百万贫困家庭提供援助。

杜里根在接受巴西报纸《Extra》采访时还表示，政府正在考虑一项旨在减轻借款人压力的债务减免方案。

“这是为了让那些如今拥有更多工作、更多收入和更多机会获得优质服务的人们能够重新开始，”他被引述说。