Brazil’s Chamber of Deputies has approved a proposal to make permanent a social program that has been in place since the start of the COVID-19 pandemic, which could provide additional support to President Jair Bolsonaro in his re-election campaign.
Late Wednesday, lawmakers approved a constitutional amendment to the Axilio Brasil welfare program, which grants a 400 reais ($80) monthly payment to low-income families, according to a statement.
The measure still has to be approved by the Senate. If ratified, the program will cost the government about 41 billion reais a year.
Aid Brazil has been in effect since August 2021 as part of government efforts to mitigate the economic impact of the pandemic. The initiative will replace the Bolsa Familia social program launched in 2004 by the Luiz Inácio Lula da Silva government.
The social program was originally intended to be temporary, but the government has seen it as an opportunity to increase its popularity among lower-class communities, most of whom are more supportive of Bolsonaro’s rival, left-wing candidate Lula.
According to recent polls, Lula is currently the favorite for the October 2022 elections, but Bolsonaro has already started to catch up with the former president.
According to political analysts, the main issues in the elections are likely to be economic at a time when the country is suffering from high inflation and unemployment combined with weak economic growth.
In this scenario, Bolsonaro can tip the scales in his favor as incumbent president by seeing him address issues and improve family finances.
“Today’s situation requires candidates to have a clear plan to deal with economic challenges. For the incumbent president, this scenario has certain positive elements, because as president, he has the power to approve economic measures with immediate effect, which translates into money in people’s pockets,” CEO Creomar de Souza told BNamericas of consulting firm Dharma Political risk and strategy.