understand what it means

Bolsa Família has been uncertain about its future since the election of Luiz Inácio Lula da Silva (PT). While the president has already promised a BRL 600 Bolsa Família, we still don’t know if this will actually be possible.

The Transitional PEC, prepared by the transitional government, is seeking to withdraw the benefit of the spending ceiling, that is, R$ 198 billion would be available in public coffers to enable the payment of Bolsa Família with its current value maintained.

The proposal already has a date to be presented: this Wednesday (23/11).

What does the previous text of the PEC say about the spending ceiling?

The previous text, delivered by the vice president-elect and transition coordinator Geraldo Alckmin and by the senator-elect Wellington Dias (PT-PI), basically says that the payment of the Bolsa Família at its current value is something urgent and fundamental, in addition to the additional payment of R$ 150 for each child up to 6 years old who are in the families that receive the benefit.

The spending ceiling exists so that fiscal responsibility is active in the country, however, according to the president-elect, social responsibility is just as important.

By excluding these billionaire expenditures from the spending cap, more money will be available for Lula to fulfill his campaign promises.

The president-elect wants to maintain the four-year period for withdrawing Bolsa Família from the spending ceiling, however, it is possible that the period will drop to just two years, given that there is a lot of resistance against the PT’s proposals within the National Congress.

When can the PEC be approved?

According to the president of the Senate, Rodrigo Pacheco (PSD-MG), there is already a possibility that next week the PEC will be approved in the House and the text will be forwarded to the Chamber of Deputies.

How are the proposed BRL 198 billion divided?

  • BRL 105 billion: Bolsa Família of BRL 405;
  • BRL 70 billion: money that will be used to raise the benefit to BRL 600 and to fund the BRL 150 more for children aged 6 years;
  • BRL 23 billion: coming from a possible excess of revenue.

It is worth noting that there are senators who argue that the amount excluded from the ceiling is still below that. There are proposals for the value to be between R$70 billion and R$80 billion; the president-elect’s team expects a minimum of R$140 billion.

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