On Friday, Brazil's presidential chief of staff stated that the government is not considering an increase in the Bolsa Familia cash-transfer benefit, contradicting earlier statements by a minister. The office of President Luiz Inacio Lula da Silva's chief of staff released a statement in the evening clarifying that there is no ongoing government study or discussion regarding raising the value of the Bolsa Familia benefit. The program, in existence for over 20 years, provides direct cash transfers to Brazil's poorest households at an estimated annual cost of 166.3 billion reais ($28.7 billion) for this year.
The potential adjustment would have addressed concerns raised by Lula about the increasing food prices facing Brazilians. Additionally, last year saw a depreciation of the local currency due to investor apprehensions about the country's debt situation.
Despite remarks by Brazil's minister of social development, Wellington Dias, to a German news outlet about a potential adjustment to Bolsa Familia being under consideration, the official statement clarified that this topic is not part of the government's agenda at present. The program currently supports approximately 20.5 million families, providing an average monthly benefit of around 674 reais, as per January data. ($1 = 5.7927 reais)