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Will the Auxílio Brasil loan be canceled after Lula’s return?

Luís Inácio Lula da Silva (PT) was elected president of the country last Sunday, the 30th. As a result, some doubts arose about how the new government will deal with social benefits, for example, whether the Auxílio Brasil loan will be cancelled.

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Luís Inácio Lula da Silva (PT) was elected president of the country last Sunday, the 30th. In 2023 he will take over the Planalto Palace and Jair Bolsonaro (PL), who was running for re-election, will step down as President of the Republic. Given this, some doubts arose about how the new government will deal with social benefits, for example, whether the Auxílio Brasil payroll loan will be cancelled.

It is important to highlight that regardless of the result of the 2022 elections, Auxílio Brasil would not change. The additional R$ 600 and the Auxílio Brasil consigned credit were established by law, and must be maintained until the end of 2022. These were Jair Bolsonaro's maneuvers to try for reelection, reaching the poor population, women and northeasterners, in the which are the groups with little proximity to the government.

During the debates and the electoral campaign, Lula, now elected president, had already spoken about his interest in returning to the Bolsa Família program. This means the removal of the name Auxílio Brasil, but without changing the amount paid, with expectations that the social program will continue to release the amount of R$ 600 per month with an additional R$ 150 for children up to 6 years old.

Will the Auxílio Brasil consignment be canceled upon Lula’s return?

So far nothing has been said about it. Some fake news circulated on social media stating that Lula would end the Auxílio Brasil loan when he was elected, due to strong criticism related to the over-indebtedness of the poorest. However, the information is not real, and even now being elected, the country's command remains in the hands of Jair Bolsonaro.

Therefore, the payroll loan should continue to be available in 2022. In fact, from 2023 onwards, there is an expectation that the Lula government will suspend the Auxílio Brasil payroll loan, including ceasing to debit the benefit salary credit installments. To this end, there must be an agreement with banking institutions to pay the debt of those who took out the credit.

The information is based on some statements made by Lula in the debates. But the officialization should only happen when he assumes the country's presidency in January 2023.

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About the author  /  Tiago Menger

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