Government releases BRL 27 billion to raise Brazil Aid, Gas Aid and purchase of food

President Jair Bolsonaro (PL) edited an MP (Provisional Measure) to release an extraordinary credit of R$ 27 billion with the aim of expanding the Auxílio Brasil, Auxílio Gás and food acquisition and distribution programs.

The release of funds was possible after the approval of a constitutional amendment that overturns the laws that deal with elections and public accounts to allow the government to boost social benefits on the eve of the race for the Palácio do Planalto.

Thanks to the enacted text, the amounts will be excluded from the spending ceiling (which prevents real growth in federal expenditures) and from the fiscal target account (result of income minus expenses to be pursued by the government in the year).

The PEC (proposed amendment to the Constitution) that endorses the payment of new benefits to the population authorized seven measures.

Among them, the expansion of Auxílio Brasil from R$ 400 to R$ 600 by the end of the year (with the incorporation of families on the waiting list), doubling of Auxílio Gás to around R$ 120 and the creation of a voucher of R$ $1,000 for truck drivers.

In addition, the text provides for aid for taxi drivers, transfer of resources to avoid price increases in public transport, subsidies for ethanol and reinforcement of funds in the program for purchasing and donating food. The total cost of the PEC is estimated at R$ 41.25 billion.

The MP published this Friday (22) is one of the steps that the government takes to raise Auxílio Brasil. The Minister of the Civil House, Ciro Nogueira, announced that the objective is to start payments with the new value from August 9.

The measure authorizes the transfer of R$ 25.4 billion to Auxílio Brasil. For Auxílio Gás, the amount is R$ 1 billion, while the budget for the program for the acquisition and distribution of food from family farming is R$ 500 million.

In addition, part of the resources released will cover bank charges related to the programs.

The increase in benefits is Bolsonaro’s bet to improve the government’s image and get reelection to the Planalto Palace.

The chief executive is behind former president Luiz Inácio Lula da Silva (PT) in all polls and has struggled to get Congress to approve the PEC that authorized the payments.

Despite the increase taking place on the eve of the elections, the president denies that the readjustment is related to the electoral period. The argument used is that the Ukrainian War and the impact of the Covid-19 pandemic led to the growth of inflation and, therefore, it is necessary to increase the benefits granted by the government.

Bolsonaro’s decision to increase Auxílio Brasil on the eve of the election contradicts the performance he had when he was a federal deputy. In 2000, the current Chief Executive was the only member of the Chamber to vote against the creation of the Fund to Combat and Eradicate Poverty.

On that occasion, Congress approved R$ 2.3 billion (equivalent to almost R$ 9 billion in values ​​adjusted by the IPCA) for the new fund, of which R$ 1 billion for sanitation actions and R$ 1.3 billion for programs of income transfer, in particular Bolsa Escola, a precursor to Bolsa Família that transferred resources to poor families who kept children in school.

In a speech to the plenary during the vote, Bolsonaro said he was proud of his vote. According to him, the proposal increased taxes and was clientelistic.