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The provisional measure (MP) that creates the new Bolsa Família was published in the Official Gazette on Thursday (02/03). As it is an MP, the text that resumes the assistance program – renamed Auxílio Brasil in the Jair Bolsonaro (PL) government – is already in force but needs to be approved by the Chamber and Senate within 120 days so as not to lose its validity. According to the government, the program’s values are:
- At least R$600,00 per family
- Additional R$150,00 for each child up to 6 years old
- Additional R$50,00 for children over 7 years old and under 18
- Additional R$50,00 for pregnant women
The social program assists families with per capita income classified as a situation of poverty or extreme poverty. The new legislation allows access to Bolsa Família to families with an income of up to R$218 per person. With the new Bolsa Família, the government intends to provide at least R$142 per person in each household. Payments must start from 20 March. The impact of the new program in 2023 will be around than R$175 billion on the Federal Budget. It was the topic of intense negotiations with Congress to approve a PEC that allowed the government to spend these resources without being constrained by the budget limit.
This political victory had a great political cost for the new government, which distributed many positions to allies in the federal administration. At the same time, it was not well-regarded by the financial market and investors. This group fears that the increase in government expenses and the disrespect for the budget limit will impacts inflation and interest rates, harming economic development.