new Bolsa Família may be without readjustment and bonuses; understand

The government’s plans to readjust the Brazil Aid values, successor of Bolsa Família, ran into the red traffic lights. The 2022 Annual Budget Bill (PLOA) was delivered to Congress this Tuesday (31), the last day of the deadline established by law.

The text arrived at the parliament with the forecast of payment of judicial debts through definitive decisions, known as precatório, in the range of R$ 89.1 billion. It is noteworthy that this amount can also be changed before the sanction.

However, within the expected budget, the value for the new Bolsa Família remains at the same level that was defined for 2021: R$ 34.7 billion. While it is being processed through Congress, the government is already planning to change this situation, acting on two front lines: parceling out the court orders and channel more funds for the Provisional Measure that creates the Auxílio Brasil.

Time and reformulation

In this dynamic, the government will have to make possible a reformulation of the Bill and send it with a new text before the end of the year 2021. If it fails to achieve these goals, Auxílio Brasil arrives without the desired readjustment by the government and, above all, without any bonus to the beneficiaries.

The president articulates, with his economic team, a figure of around R$ 50 billion to fund the program, but he is frustrated with the R$ 37.7 billion.

Benefits within the new Bolsa Família

The 2022 PLOA wording provides that at least three benefits to be integrated into Auxílio Brasil and, therefore, aiming at the development of children and youth through the transfer of income. The benefits would be as follows:

  • Early Childhood: which is intended for children aged 0 to 3 years old. In this case, it adds to the value already made available per capita;
  • Family Composition: includes families with pregnant women and members between 3 years old and 21 years old;
  • Overcoming Extreme Poverty: for people who are still within the group living in extreme poverty. It is based on the payment of the last two benefits.

Second alternative for court orders

The National Council of Justice (CNJ) has been raising a hypothesis that has gained strength in recent days for the solution of court orders. In the proposal, the value of R$89 billion could be reduced to R$39.9 billion, making government spending less.

In general terms, it would be the establishment of an annual payment limit, but which would be corrected for inflation. Thus, the government would have a better predictability to profile budget. From 2020 to 2021, the increase in amounts committed to court orders was 62.7%.

Generally, this type of elevation is very relative and depends on the movement of sentences, without further resources, determined by the CNJ. The controversial approval of the former Fundamental Education Development Fund (Fundef) is an example of these precatories.