Brazil Congress splits amendment to free up funds for welfare payments

The Congress split the bill so it could pass the parts both chambers agree upon but not those they differ on, such as linking additional spending next year to social programs to prevent it being used for pork barrel as the lower house wanted. The split allows the government funds to pay beneficiaries this month in its new welfare program called Auxilio Brasil, which replaced the long-running Bolsa Familia cash transfer program.

Brazil's Congress on Wednesday enacted parts of a constitutional amendment bill that will ease spending restrictions and allow the government 60 billion reais ($10.8 billion) in fiscal leeway needed to fund a new welfare program next year. The Congress split the bill so it could pass the parts both chambers agree upon but not those they differ on, such as linking additional spending next year to social programs to prevent it being used for pork barrel as the lower house wanted.

The split allows the government funds to pay beneficiaries this month in its new welfare program called Auxilio Brasil, which replaced the long-running Bolsa Familia cash transfer program. Auxilio Brasil will expand welfare payments to 17 million poor families and pay out 400 reais a month, as planned by President Jair Bolsonaro, who is eyeing votes to get re-elected in next year's election.

The lower chamber will have to deliberate next week on changes made by the Senate, looking to settle differences that prevented approval of a key part of the amendment that allows the government to stagger court-ordered payments. That proposal would give the government room to spend an additional 106 billion reais next year without breaking a constitutional spending cap. The government hopes to see that approved before the Congressional recess begins on Dec. 17.

($1 = 5.5327 reais)