The debate on the emergency aid extension

BRAZIL POLITICS - Report 05 Aug 2020 by Murillo de Aragão and Cristiano Noronha

While leaving the Alvorada Palace on August 5, President Jair Bolsonaro stated, “It is not possible to continue the aid for a long time,” when referring to the extension of the R$ 600 paid by the government to informal workers. Bolsonaro noted that the aid costs the federal government R$ 50 billion per month. The president also criticized governors: “The economy has to work. And some governors still insist on keeping everything closed."

Despite its social importance, the emergency aid is the most expensive measure of the coronavirus package. The aid has used more than R$ 254 billion from public vaults. Created to last three months – April, May and June – the R$ 600 aid was extended for two extra months (July and August). According to experts from the Ministry of the Economy, the extension of the same program until the end of the year would bring the total cost to R$ 450 billion.

Since the the week of August 3, information about the Ministry of the Economy’s alleged desire to extended emergency aid at R$ 200 – similar to what is currently paid by the Bolsa Família program – has circulated in Brasília (DF). Extending the aid may help maintain the president’s popularity. Even at a lower value, it reaches a large amount of people. In order to extend the emergency aid at a lower rate, the government needs the approval of the National Congress.

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