Auxílio Brasil may reduce the value of Bolsa Família by 5.4 million Brazilians

Auxílio Brasil can reduce the value of Bolsa Família by 5.4 million Brazilians Auxílio Brasil, created by the Jair Bolsonaro government (no party) to replace Bolsa Família, can reduce the value of the benefit of up to 5.4 million people served by the social program. The number of people affected by the measure corresponds to 37% of the current 14.7 million beneficiaries of Bolsa Família.

The data are from the newspaper Estado de S.Paulo, which requested, via LAI (Law on Access to Information), simulations carried out by the government itself. The estimates are from an opinion issued by the Ministry of Citizenship on August 2, days before the submission of the provisional measure that creates the Auxílio Brasil.

According to government data, the reduction would be between R$ 10 and R$ 173. “For 50% of the most affected families, the reduction in the value of the benefit will be up to R$ 46”, says an excerpt of the opinion.

At the request of the State of São Paulo, economist Ricardo Paes de Barros, a researcher at Insper and one of Brazil’s leading experts on social policies, analyzed the opinion. He assesses that there are two possible explanations for the reduction in the benefit amount.

The first is the extinction of the basic benefit, currently paid to families in extreme poverty in the amount of R$89. Paes de Barros explains that, if a family is close to reaching a family income close to R$89, the Bolsa Family pays more than necessary to fulfill your goal.

The second explanation is the cut in the maximum variable benefits received by an underage child or pregnant woman. In the current design of Bolsa Família, the limit is seven, but with Auxílio Brasil it will drop to five. According to Paes de Barros, the limit should be eliminated. “There’s something about regulating the size of the family, it can’t be too big”.

Sociologist Luis Henrique Paiva, former National Secretary of Citizenship Income and a researcher at IPEA (Institute for Applied Economic Research), points out that 90% of families will have a “loss” of at most R$85, an amount that will be replaced by the benefit transition. He also analyzed the government’s opinion at the request of the State of São Paulo.

He cites, however, that the lack of readjustment of the benefit can harm families. Today, adjustments are granted only when there are resources available in the Budget. The last one was given in 2018, in the Michel Temer (MDB) government.

Also according to the opinion of the federal government, possibly the poorest families with younger children will receive an increase with Auxílio Brasil. Government simulations estimate that the benefit for children aged zero to three years will increase from R$ 41 to R$ 90. Source: Economia Uol