RIO DE JANEIRO — Brazilian President Luiz Inácio Lula da Silva signed a decree on Thursday increasing benefits of his flagship welfare program by 15%, weeks before the first round of the presidential elections.
The minimum monthly benefit per family of Bolsa Familia (Family Grant) will rise to 691 reais ($134) next month, from 600 reais. The decree says that it adjusts payments for accumulated inflation since March 2023.
The measure will increase the purchasing power of voters, who will decide in October whether to grant Lula a fourth, nonconsecutive term, or elect Sen. Flávio Bolsonaro, a son of former President Jair Bolsonaro, in a likely run-off vote. Polls show the two are currently running neck-and-neck.
“Bolsa Familia is central to our strategy to look after more vulnerable families, guarantee income so that people emerge from poverty and don’t suffer from food insecurity,” Finance Minister Dario Durigan said.
The additional spending would be absorbed within existing budget allocations and would not represent a new expenditure, he added.
Lula introduced the cash-transfer program at the beginning of his first term in 2003. It provides financial aid to low-income families conditional on children’s school attendance and health requirements, such as vaccinations.
Bolsa Familia was the subject of thousands of academic studies in Brazil and abroad, which reported significant reductions in poverty, inequality and infant mortality. Researchers also found greater access to basic health and said school attendance also improved.
Bolsonaro replaced the program with Auxilio Brasil (Brazil Aid) ahead of the 2022 vote, in what analysts widely saw as an effort to rebrand the popular program associated with Lula to buoy his reelection chances. Lula defeated Bolsonaro, who is currently serving a 27-year prison sentence for attempting a coup.
Last week, Lula signed a decree and a provisional measure aimed at lowering fuel prices, as the U.S.-Iran war drives up the cost of filling the tank. The cost of fuel is a particularly sensitive issue for voters.
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