Brazil's Lula raises welfare benefit ahead of October election

Brazilian President Luiz Inacio Lula da Silva, a candidate for reelection for the Workers' Party (PT), attends a campaign rally in Brasilia, Brazil, September 16, 2026. REUTERS/Adriano Machado

BRASILIA, Sept 17 - Brazil's Planning Minister Bruno Moretti announced on Thursday a 15% increase in cash transfers under the country's flagship welfare program Bolsa Familia, as President Luiz Inacio Lula da Silva seeks re-election in an October vote.

Bolsa Familia is a hallmark policy of Lula's Workers Party and has long been a centerpiece of its social welfare agenda.

Speaking alongside Lula at the presidential palace, Moretti said the measure would have a fiscal cost of 5.8 billion reais ($1.13 billion) in 2026 and 22 billion reais in 2027.

With the increase, the minimum monthly benefit will rise to 691 reais ($134.02), from 600 reais previously.

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.

Finance Minister Dario Durigan said the additional spending would be absorbed within existing budget allocations and would not represent new expenditure, "so that we maintain our fiscal targets and fiscal results trajectory for the country."

The measure 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. REUTERS