Lula announces increase in social benefits in Brazil — Al Jazeera
In Brazil, the government of President Luiz Inácio Lula da Silva announced an increase in the minimum monthly payments under the Bolsa Familia poverty reduction programme from 600 to 691 reais. The changes will take effect next month. The decision was presented in the country’s capital, Brasília, ahead of the presidential election, the first round of which is scheduled for October 4. This was reported by Al Jazeera.
Inflation compensation
The increase in payments will amount to 15%. Lula da Silva said on social media that the adjustment is intended to compensate for the effects of inflation, which has been rising since 2023 and weakening the population’s purchasing power.
According to the president, the programme helps provide families with food, supports the circulation of money in the economy and adds dignity to Brazilian families.
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Planning Minister Bruno Moretti said that the increase in cash assistance should help recipients maintain their purchasing power amid the rising cost of living. According to his data, inflation from the programme’s relaunch in March to August amounted to 15.04%.
Budget costs and elections
Finance Minister Dario Durigan said that the current budget makes it possible to finance the increase without additional spending. The increase in assistance is expected to cost the government 5.8 billion reais in 2026 and 22 billion reais in 2027.
Bolsa Familia is one of the key social programmes of Lula da Silva and his Workers’ Party. Households with a monthly income of 218 reais may qualify for assistance. Lula da Silva is opposed in the election by right-wing candidate Flávio Bolsonaro, the son of former President Jair Bolsonaro. Polls show the two candidates in nearly equal positions.
