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Brazil Aid was approved by Congress by December, understand more. Despite changes introduced by the appeal to make the benefit permanent, the approved version has a preliminary increase.
The expansion of Auxílio Brasil from R$ 400 to R$ 600 was approved by Congress, but without the changes proposed by the opposition. The new amount will only be paid until December 2022 and not permanently, as the authors of the changes wanted.
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The text was approved by the Senate at the end of June, but without emphasis. The highlights presented ruled out the approval of the Constitutional Amendment Proposal (PEC), which limits supercharged payments until the end of this year and maintains them indefinitely.
In the second vote of the Chamber there were 469 votes in favor, 17 against and only 2 abstentions. The document was published last Thursday, 14.
Auxílio Brasil: What else does PEC Kamikaze offer?
The document, dubbed the Kamikaze PEC by Minister Paulo Guedes, provides for other measures such as expanding the gas voucher to one cylinder every two months; Creation of a R$ 1,000 voucher for self-employed truck drivers and release of subsidies for taxi drivers.
In addition to increasing the value of the Auxílio Brasil, there are plans to eliminate the queue of people waiting to be admitted to the program. The estimated budget for these two objectives alone is R$ 26 billion.
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The cost is made possible by a device that places the country in a state of emergency. Circumventing the electoral law allows the government to spend a total of R$ 41.25 billion outside the spending cap.
The spending cap is one of the most important anchors that guarantee economic stability in Brazil. Violation of this rule will lead to greater volatility in the exchange rate and interest rates, creating a scenario of distrust that could lead to the devaluation of the real and an increase in inflation.
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