Brazil’s new Family Grant will not breach spending cap – Citizenship Minister

RIO DE JANEIRO, BRAZIL – Minister of Citizenship João Roma on Monday said that the government is aiming for the highest possible value for the new social program to replace Bolsa Família (Family Grant), but it needs to comply with the spending cap and balance it with fiscal responsibility to prevent undermining the country’s economic recovery.

“We want to improve the program’s efficiency and average value, but we have to comply with fiscal responsibility to prevent an imbalance in finances,” said Roma in a press conference, after the government submitted a provisional measure to Congress with proposed changes to the program.

According to Roma, the Auxílio Brasil (Brazil Aid) program has received an R$18 (US$3.4) billion budget increase for 2022, totaling R$53 billion against the current R$35 billion for Bolsa Família, although the government is still looking for new budget sources to finance an increase in the benefits’ average value.

The average amount for Bolsa Família is approximately R$190, and President Jair Bolsonaro has announced that the new program aid payments will be increased by an average of at least 50%.

“We are looking for budget sources that can justify this increase in value. We initially planned an R$18 billion increase for 2022, and this resource would be added to the budget, which is currently around R$35 billion for the current cash transfer program,” he said.

According to Roma, the government has a surplus of resources from Bolsa Família, as emergency aid has been paid since last year because of the Covid-19 pandemic. “This creates a surplus from Bolsa Família that could be used in increasing the Auxílio Brasil program,” he said.

The Minister reiterated that the final adjustment value will only be determined in late September, after the government submits the Budget Guidelines Law (LDO) to Congress.

Roma added that there will be no cuts in other social programs and confirmed the start of Auxílio Brasil payments in November, after the end of the emergency aid in October.