Brazil’s Congress approves Brazil Aid increase to US$111

RIO DE JANEIRO, BRAZIL – On Wednesday, July 13, the plenary of the House of Representatives approved the Proposal of Amendment to the Constitution (PEC) 1/22 after voting in two rounds. The text was unchanged from the one sent by the Senate on June 30 and is now being sent to the National Congress for enactment.

The PEC institutes a state of emergency in the country until the end of the year and allows for the expansion of social and economic benefits for the population.

R$41.3 billion (US$7.7 billion) is foreseen for the expansion of the Brazil Aid, which will have a minimum value of R$600 (US$111) for each family, and of the Gas Aid, in addition to the creation of aid for truck drivers and taxi drivers due to the increase in fuel prices.

The resources will also reinforce the Alimenta Brasil (“Feed Brazil”) program, finance free public transportation for the elderly, and compensate the states that grant biofuel tax credits.

Of the total resources approved, R$26 billion will be allocated to Brazil Aid, increasing R$200 in the minimum amount paid to each family, going from R$400 to R$600 from August. The goal is to include all families eligible to receive the benefit.

In the case of the Gas Aid, R$1.1 billion will be destined to complement the amount paid every two months to the citizens who receive the benefit. This way, the family will receive 100% of the national average value of the 13 kg bottle of Liquefied Petroleum Gas (LPG) and no longer the 50% paid since the beginning of the year.

The Feed Brazil program, which buys the production of family agriculture and gives it to social assistance entities, schools, and daycare centers, will have a budget reinforcement of R$500 million. These are purchases of up to R$12,000 per year from each producing family.

Truck drivers registered in the National Registry of Highway Cargo Transporters (RNTRC) will receive R$1,000 monthly. Cab drivers registered until May 31, 2022, upon presentation of their permission document, will be entitled to R$200 monthly after regulating the form of payment.

With the recognition of the state of emergency, due to the global economic crisis caused by the pandemic and the war in Ukraine, the budget values made available by the PEC do not need to be within the spending cap limit, within the so-called Golden Rule, or within the provisions of the Fiscal Responsibility Law.

With information from the Ministry of Citizenship