Brazil’s aid budget is lower than that of Bolsa Família

New transfer program from the federal government, Auxílio Brasil is expected to have fewer resources in its first year than its predecessor, Bolsa Família, in 2021. This is foreseen in the 2022 Annual Budget Bill (PLOA) for that the government sent it to Congress on Tuesday (31).

The proposal allocates R $ 34.7 billion in aid, slightly below the amount programmed for Bolsa Família in 2021 (R $ 34.9 billion).

The PLOA 2022 also sets the goal of including 14.7 million families in the new program, contrary to what was announced by the economic team, whose intention was to reach 17 million families.

While there is no end to issues such as income tax reform, the possible payment of installments and the possibility of privatizing state-owned enterprises in 2022, the government has opted for a conservative posture in the PLOA. The proposal foresees the full payment of court orders in 2022 (89.1 billion reais), which, if confirmed, will reduce the space for other spending.

For this reason, at least for now, the budget does not keep President Jair Bolsonaro’s promise to increase by at least 50% the average ticket paid by Bolsa Família, currently at R $ 192.

“We know that the pandemic has caused food inflation around the world. So we cannot leave the most vulnerable unattended. so now [está] We have decided on a minimum proposal of 50% for Bolsa Família, which is now called Auxílio Brasil, ”Bolsonaro said on August 9, when he took the interim measure that created the new program in the Chamber of Deputies. .

But the economic team does not rule out possible changes to the budget in the coming months, which could allocate more resources to the social program. “What is in the proposal is the maintenance of the budget, even with the new design it has to adapt to this size. During it it can be changed,” said the special secretary of the Treasury and Budget, Bruno Funchal, at a press conference on Tuesday. Also according to Funchal, the Ministry of Citizenship will be responsible for managing resources and making possible adjustments to meet demand.

Among other issues, the government is awaiting Congress approval of the income tax reform. Indeed, the government intends to allocate to Auxílio Brasil the money collected through the taxation of dividends (estimated at 19 billion reais per year).

“As we are a stamping country, we will have to take the dividends and say that part will be permanent for Bolsa Família. It is easy to pay the extra 20% that the program needs, it could be even more, but we sums are not going to increase that much, are going to increase just a little, “Economy Minister Paulo Guedes said in July.

The government can also wait for the consequences of the privatization of Eletrobras, for example, which could add more resources to the social program in the following years.

In the process of capitalization of the public enterprise, provided for in the state accounts, which will run until the beginning of 2022, the binational hydroelectric plant Itaipu and Eletronuclear cannot be privatized. A new Crown or mixed-capital corporation must manage both corporations.

From 2023, when Itaipu’s loans and financing are due to be repaid, at least 25% of the company’s financial results will be allocated to a social program of the federal government. Although the deputy sent to Congress did not specify the recipient of the funds, it is assumed that the money could go to Auxílio Brasil.

In the deputy who established the program, the government still speaks, without going into details, of using “multiple sources” of funding, “in particular partnerships with the private sector, federated entities, other public authorities, multilateral organizations, civil society organizations and others. national and international institutions “.

How many resources will be allocated to each benefit

The design of the Auxílio Brasil program provides for nine services, grants and scholarships. The deputy who instituted the program did not define the values ​​for each one, but the PLOA 2022 already directs the total resources for each one.

Without going into details, the budget document defines that almost the entire budget of Auxílio Brasil goes to four services, called “financial”. They will have a little over R $ 34.2 billion, or 98.7% of the total budget. Are they:

Early childhood allowance: For families with children up to 36 months, paid by a member who fulfills this condition Family composition allowance: For families with pregnant women or persons aged three to 21, paid by a member in this condition; Overcome extreme poverty: Paid by family, for those who have not exceeded the extreme poverty line after payment of the first two benefits (Early childhood and Family composition); and Transition Compensatory Allowance: to compensate families who have had a reduction in the total amount received due to the end of Bolsa Família and the new financial allowance structure provided by Auxílio Brasil.

For the other five types of grants and scholarships, only 455 million reais, or 1.3% of the total program budget, are allocated.

According to PLOA 2022, BRL 187.5 million will be used to encourage the production, donation and consumption of healthy food by family farmers, as part of the aid for rural productive inclusion, to which only families living in the municipalities that register will be able to benefit from membership. mandate with the Department of Citizenship.

In the Citizen’s Aid to Children, intended for “children’s access, full-time or part-time, to daycare centers, regulated or authorized, which offer education to children”, the government will contribute 137, 5 million reais. According to the PLOA, the allowance will be paid “to the head of families with children aged 0 to 48 months”.

An amount of R $ 85.9 million is earmarked for aid for urban productive inclusion, intended for citizens who are already beneficiaries of Brazilian aid and who obtain a work contract.

The sports school allowance, intended for students aged 12 to 17 who stand out in official competitions of the school gaming system, is expected to receive a share of R $ 22 million of the total.

Finally, the junior scientific initiation scholarship, intended for students who stand out in academic and scientific competitions related to the themes of basic education, will have a budget of 22 million reais.

How will Brazil Aid be and who can participate

Auxílio Brasil will target families living in extreme poverty (who, according to current criteria, have a monthly income of up to R $ 89 per person), as well as families living in poverty (monthly income between 89 R $ and 178 R $ per person) which have, in their composition, pregnant women or people aged up to 21 years. The government must update the parameters of the poverty line – which have been frozen since 2018 – in subsequent regulations.

According to what the government established in the MP, families benefiting from Auxílio Brasil must comply with requirements such as taking the prenatal examination, complying with the national immunization schedule and meeting the minimum school attendance. Further details on the rules and penalties, in case of non-compliance, should be defined in the regulations.

Beneficiary families who have increased income can be supported in Auxílio Brasil for up to two years, as long as the family income per capita remains below 2.5 times the ceiling defined for the poverty situation.

Content edited by: Fernando Jasper

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