Increase in Aid Brazil and gas vouchers approved by the Senate

The state of emergency in Brazil was approved in the first round. In this way, Auxílio Brasil and gas vouchers will increase until the end of the year

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Last Thursday (30), the Proposed Amendment to the Constitution (PEC) was approved in the first round, which determines a state of emergency in Brazil, with the aim of making it possible to create a truck driver voucher of R$ 1,000 for self-employed professionals. and a benefit for taxi drivers. The text also provides for the expansion of Auxílio Brasil and the gas voucher until the end of the year.

The text that amends the Constitution still needs to go through a new round of voting in the Senate before moving on to analysis by the Chamber of Deputies.

As much as the opposition has criticized the “electoral character” of the measure, since the text is being analyzed three months before the election, the opposition to the government voted in favor of the PEC.

tax impact

The fiscal impact of the proposal on public coffers could reach R$ 41.2 billion.

According to what Senator Fernando Bezerra (MDB-PE) had already predicted in his report, the PEC foresees until the end of this year:

  • Auxílio Brasil: increase from R$400.00 to R$600.00 per month and inclusion of 1.6 million new families in the program – estimated cost: R$26 billion;
  • Self-employed truck drivers: creation of a “voucher” worth R$ 1,000 – estimated cost: R$ 5.4 billion;
  • Vale-Gás: Increase of R$ 53.00 for the value of a cylinder every two months – estimated cost: R$ 1.05 billion;
  • Free transport for the elderly: compensation to the states for offering free public transport for the elderly, already provided for by law – estimated cost: R$ 2.5 billion;
  • Assistance for taxi drivers: benefits for taxi drivers duly registered until May 31, 2022 – estimated cost of up to BRL 2 billion.
  • Alimenta Brasil: transfer of R$ 500 million to the Alimenta Brasil program, which purchases food produced by family farmers and distributes it to food insecure families;
  • Ethanol: Concession of up to R$ 3.8 billion, through tax credits, to maintain the competitiveness of ethanol over gasoline.

emergency state

The Elections Law prohibits the creation of new social benefits in an election year. It is only authorized to pay aid in which the budget is already authorized in the year prior to the election, such as gas vouchers. However, it does not apply to the vouchers for truck drivers and taxi drivers.

Thus, the government’s strategy to enable such benefits was to declare a state of emergency.

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Image: rafapress / Shutterstock.com

About Abhishek Pratap

Food maven. Unapologetic travel fanatic. MCU's fan. Infuriatingly humble creator. Award-winning pop culture ninja.

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