Brazil's Planning Ministry said Monday that about 20 billion reais ($3.95 billion) must be moved among 2027 budget items for measures announced by President Luiz Inacio Lula da Silva, with the spending cap left intact.
The amount is slightly above 1% of primary spending covered by Brazil's fiscal framework. The ministry said shifting funds would keep the expenditure ceiling and primary-budget target unchanged.
Reuters reported that a 15% increase to the Bolsa Familia welfare program is already being implemented. The outlet also reported that free public transport nationwide on weekends is planned, but the measure has not been formally submitted to Congress.
The government put the welfare increase's projected 2027 cost at 22 billion reais, 2 billion reais more than the planned transfer for the wider package. Reuters reported that the ministry's statement did not account for the difference between the program's projected cost and the total reallocation.
The ministry challenged public estimates of the package's total fiscal effect, saying they improperly group policies with different funding sources and implementation schedules. It also said higher oil-related revenue had offset some fuel-tax relief. Reuters reported that the ministry argued public programs should not be treated automatically as election spending.
Lula is seeking re-election after trailing Senator Flavio Bolsonaro in the first round, Reuters reported. The Superior Electoral Court said Bolsonaro received 47.03% of valid votes and Lula 45.16%, with 99.99% of ballot boxes counted. The court set the runoff for Oct. 25.
