Brazil’s Lula Announces 15% Welfare Increase Ahead of Presidential Election

Brazilian President Luiz Inácio Lula da Silva’s government has announced a 15 per cent increase in welfare benefits under the country’s flagship Bolsa Família programme, weeks ahead of the October presidential election.

The government said the increase was aimed at offsetting the impact of inflation and protecting the purchasing power of low-income families.

Under the new adjustment, the minimum monthly Bolsa Família payment will rise from 600 reais ($116) to 691 reais ($134) starting next month.

Lula said the programme had improved the lives of millions of Brazilians and described the additional payments as support for families struggling with rising living costs.

“It is income to put food on the table. It is money circulating in the economy. It is more dignity for Brazilian families,” Lula said in a social media post.

Finance Minister Dario Durigan said the current budget could accommodate the increase without requiring additional spending. Planning Minister Bruno Moretti said the higher payments would help beneficiaries maintain their purchasing power as prices rise.

According to Moretti, inflation since the programme was relaunched in March through August reached 15.04 per cent.

The welfare increase comes as Lula seeks another term in office and faces a challenge from Flavio Bolsonaro, son of former President Jair Bolsonaro.

Brazil’s presidential election is scheduled for October 4, with a possible runoff later in the month if no candidate secures more than half of the valid votes.

The government estimates that the new benefit adjustment will cost 5.8 billion reais ($1.13 billion) in 2026 and 22 billion reais ($4.27 billion) in 2027.

Bolsa Família has remained a major component of Lula’s social policy agenda, providing financial assistance to millions of low-income households across Brazil.

The programme is available to households with a monthly income of up to 218 reais ($42), subject to its eligibility requirements.

The announcement comes amid concerns over rising debt-servicing costs and broader economic pressures. The government is also considering a debt-relief proposal intended to ease the financial burden on borrowers.