President Luiz Inácio Lula da Silva received the advice to use the decision of the Federal Supreme Court (STF) on the regulation of the law that establishes the basic income for payment of Auxílio Brasil (which will return to Bolsa Família) of R$ 600 in 2023 , without requiring the approval of any proposed amendment to the Constitution (PEC).

In short, this option, discussed between STF ministers and the elected president, is the fourth proposal available to the transition team. In a decision handed down in 2021, the Federal Superior Court forced the government to pay a basic income to citizens based on Law 10,835 of 2004, authored by former senator Eduardo Suplicy.

According to the decision at the time, the benefit should be paid from 2022. The action was filed by the Federal Public Defender's Office in Rio Grande do Sul on behalf of a homeless person. None of the 11 Supreme Court justices voted against the rule.

After almost two decades of Brazilian law being forgotten, it gradually determines the basic income of citizenship. It was established starting with those most in need, until it became universal. It is estimated that the Executive will plan the following steps, until reaching universal and unconditional basic income.

The argument on the table is that the elected government will be able to make this payment through an extraordinary credit, an expense that is outside the spending ceiling (rule that expenditure growth is limited to the variation in inflation). The Bolsonaro government said it complied with the decision by clearing the benefit queue.

According to the newspaper O Estado de S. Paulo, this possibility was raised without further details at Monday's meeting between Lula and members of the transition team, coordinated by vice-president-elect Geraldo Alckmin.

The exit door via decision of the Federal Supreme Court for the payment of Bolsa Família in the amount of R$ 600 is pending for Lula. However, the equation chosen by the president must count on discussion with Congress and, thus, seek to resolve it in politics before the final decision on the path forward. 

A team source informed the newspaper O Estado de S. Paulo that to resolve the urgent problem of paying social benefits, the Federal Supreme Court would have to explicitly address the possibility of overcoming all tax rules: spending cap, golden rule and primary outcome target. This is to avoid legal uncertainty, a concern for the team.

The strategy so far has been to follow two paths: negotiate a broad PEC to pave the way for the main campaign promises, in addition to carrying out a consultation with the Federal Audit Court to explore the legal possibility of paying the Aid in January without the need approval of the PEC. One proposal does not exclude the other.

Before Lula's arrival in Brasília on Tuesday, several meetings of the transition team are planned with the command of the Chamber, Senate and Mixed Budget Committee (CMO) and party leaders.

At the last meeting on Monday, technicians presented the cost of the main campaign promises. However, the point raised by Lula at the meeting was that he needs to have the information so that everyone (including the press) understands the reason for what is being spent and for what purpose. 

Lula highlighted the importance of having political dialogue to discuss with the presidents of the Chamber, Arthur Lira (PP-AL) and the Senate, Rodrigo Pacheco (PSD-MG). This is the only way to create a noise-free proposal.

In general terms, the proposal to use the STF decision combines with 3 other proposals: 

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