Brazil Raises Bolsa Familia Payouts Ahead of October Election

Brazil's government announced on Thursday a 15% increase in cash transfers under Bolsa Familia, the country's flagship welfare programme, as President Luiz Inacio Lula da Silva prepares to contest an October election.

Planning Minister Bruno Moretti, speaking alongside Lula at the presidential palace, said the measure would cost 5.8 billion reais in 2026 and 22 billion reais in 2027. The minimum monthly benefit will rise to 691 reais from 600 reais.

Households with a per capita monthly income of up to 218 reais are eligible for Bolsa Familia, which currently serves millions of low-income families across Latin America's largest economy. The programme is a hallmark policy of Lula's Workers Party and has long been central to its social welfare agenda.

Finance Minister Dario Durigan said the additional spending would be absorbed within existing budget allocations and would not represent new expenditure, adding that the government would maintain its fiscal targets and fiscal results trajectory.

The announcement comes as opinion polls show Lula running neck-and-neck in a potential second-round runoff with his main challenger, right-wing Senator Flavio Bolsonaro, the son of former President Jair Bolsonaro.