Bolsonaro Plans Signature Social Program Replacing Lula’s Legacy
Bolsonaro Plans Signature Social Program Replacing Lula’s Legacy
(Bloomberg) -- President Jair Bolsonaro plans to revamp Brazil’s social programs, supplanting the landmark plans of past leftist administrations while launching his own brand in the process.
Renda Brasil, which translates as Brazil Income, will merge several existing social policies including the widely popular Bolsa Familia cash transfer program that was former President Luiz Inacio Lula da Silva’s signature achievement, according to four people familiar with the matter.
Begun in 2003, Bolsa Familia helped consolidate Lula’s support among the poor by paying families with little or no income a monthly stipend as long as their children attend school. It is credited with reducing hunger and poverty.
Renda Brasil, which should replace that brand within a year, aims to reallocate funds that currently are not reaching the poorest Brazilians without increasing spending, said the people, who requested anonymity because the plan isn’t public yet.
Brazil is currently spending 45 billion reais ($8.6 billion) a month -- more than the 30 billion reais needed to fund Bolsa Familia for a year -- in emergency payments to some 38 million informal workers who lost their income during the coronavirus pandemic. The payments have supported Bolsonaro’s popularity in that population segment during the crisis and could become a valuable asset during his eventual re-election campaign in 2022.
Latin America’s largest economy is at the cusp of a historic downturn that’s expected to lead to a 6.5% plunge in gross domestic product this year while increasing poverty. Restrictions on movement and commerce aimed at slowing the virus have exposed the plight of the country’s most vulnerable citizens who do not have the luxury of working from home.
In a recent cabinet meeting, Economy Minister Paulo Guedes said the government had found 38 million “invisible Brazilians who deserve to be included in the job market.”
Renda Brasil is expected to launch right after the emergency payments cease in September, the people said, adding that the announcement will likely come before that date. The economy ministry is also working on a plan to supplement the income of those who make less than a minimum wage, they said. The ministry did not immediately respond to a request for comment.
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