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LatinNews Daily - 03 December 2021

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In brief: Legislation for new benefit passes Brazil’s congress

* The Brazilian senate has approved an executive decree which creates the Auxílio Brasil social benefit, with which the government led by President Jair Bolsonaro will substitute the two decades-old Bolsa Família conditional cash transfer programme. Auxílio Brasil, which covers a number of assistance programmes including a benefit for families with young children, education incentives, and a benefit for families living in extreme poverty, aims to reach a higher number of beneficiaries than Bolsa Família did, but it will be less wide-ranging than the emergency basic income that the government instituted in response to the coronavirus (Covid-19) pandemic, which ended last month. A constitutional reform which would free up funds to bankroll Auxílio Brasil, known as the ‘PEC dos precatórios’, has also been approved in the senate, but with modifications which require it to return to the chamber of deputies. The PEC would, amongst other things, modify fiscal rules to free up spending for the government next year.