Brazil's Lula Boosts Welfare Payments by 15% Ahead of Election

Brazilian President Luiz Inácio Lula da Silva has signed a decree increasing benefits of his flagship welfare program by 15%, weeks before the first round of the presidential elections.

The minimum monthly benefit per family of Bolsa Familia will rise to 691 reais ($134) next month, from 600 reais. The decree states that it adjusts payments for accumulated inflation since March 2023.

This measure is intended to increase the purchasing power of voters, who will decide in October whether to grant Lula a fourth, nonconsecutive term or elect Sen. Flávio Bolsonaro, son of former President Jair Bolsonaro, in a contest that polls suggest is too close to call.

"Bolsa Familia is central to our strategy to look after more vulnerable families, guarantee income so that people emerge from poverty and don’t suffer from food insecurity," Finance Minister Dario Durigan said. He added that the additional spending would be absorbed within existing budget allocations and would not represent a new expenditure.

Lula originally introduced the cash-transfer program at the beginning of his first term in 2003. It provides financial aid to low-income families, with conditions tied to children's school attendance and health requirements, such as vaccinations. The program has been credited in numerous studies with significant reductions in poverty, inequality, and infant mortality, as well as improvements in access to basic health and school attendance.

In 2022, Bolsonaro replaced Bolsa Familia with Auxilio Brasil, a move widely seen by analysts as an attempt to rebrand the popular program associated with Lula to bolster his reelection chances. Lula ultimately defeated Bolsonaro, who is currently serving a prison sentence.

Last week, Lula also signed decrees aimed at lowering fuel prices, a particularly sensitive issue for voters, as global conflicts drive up costs.