Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Brazil eyes combining pandemic relief, 'Bolsa Familia' welfare in 2022, says source

EconomyOct 18, 2021 07:19PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: People wait in line to receive food aid distributed by Central Unica das Favelas (CUFA), a Brazilian non-governmental organisation, amid the coronavirus disease (COVID-19) outbreak at Brasilandia slum in Sao Paulo, Brazil May 13, 2021. REUTER

By Marcela Ayres

BRASILIA (Reuters) - Brazil's government is considering combining pandemic relief payments and "Bolsa Familia" welfare programs into a monthly stipend of 300 reais ($54.42) next year, according to an Economy Ministry official with direct knowledge of the matter.

The government is weighing that option due to budget constraints resistance in Congress to its proposed tax reform, said the source on Monday, requesting anonymity to discuss confidential policy debates.

Maintaining soon-to-expire pandemic relief is crucial for far-right President Jair Bolsonaro as he looks at his diminishing re-election chances in 2022 due to plummeting popularity over his handing of COVID-19, while a tight fiscal situation restricts his ability to spend.

Economy Minister Paulo Guedes had banked on a bill on federal government court-ordered debts going through to delay outlays, which would have allowed him to fund a new stipend called Auxilio Brasil without exceeding the spending ceiling.

He had also insisted on the need to approve tax reform, which provides for the taxation of dividends for the first time in Brazil. But though it passed the lower chamber, the Senate has not even got around to discussing the tax bill.

Earlier on Monday, Bolsonaro said "God willing" his government should resolve the issue this week and decide the details of the extension of the emergency aid stipend.

The current emergency aid pays between 150 and 375 reais per month to Bolsa Familia beneficiaries and other vulnerable Brazilians, but the last installment will be this month.

The extension of the stipend is considered vital to help people who were left unprotected by the coronavirus pandemic and have lost purchasing power due to increased inflation. It is also seen as a tool to raise Bolsonaro's popularity going into an election year.

The emergency aid is aimed at benefiting more than 45 million people, a larger number than those that qualify for Bolsa Familia, which covers 14 million families.

($1 = 5.5123 reais)

Brazil eyes combining pandemic relief, 'Bolsa Familia' welfare in 2022, says source
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email