New Bolsa Família could lift 3 million out of extreme poverty

The government cash transfer program Bolsa Família, created in 2003 during the first term of President Luiz Inácio Lula da Silva, is about to undergo some changes. In addition to a fixed stipend of BRL 600 (USD 121) per month for its beneficiaries, the program will include additional payments for children and pregnant women. 

Brazilian economists have estimated that the program’s revival could help lift 3 million people out of extreme poverty.

According to data released by the Brazilian Institute of Geography and Statistics (IBGE), approximately 62.5 million people (29.4 percent of the Brazilian population) were living below the World Bank’s poverty line in 2021. Of these, 17.9 million people, or 8.4 percent of the population, were classified as living in extreme poverty, the highest number and percentage since the IBGE began tracking this data in 2012. 

Lifting these people out of poverty is not only a priority, but also beneficial for the country’s economy.

How Bolsa Família works

The Bolsa Família program provides monthly cash payments to families living in poverty or extreme poverty, especially those headed by women with children. Originally, the amount paid to beneficiaries was based on the family’s income, number of children, and other factors.

During the previous Jair Bolsonaro administration, the program was transformed into Auxílio Brasil. A fixed value of BRL 400 was established for beneficiaries during the pandemic, later increased to BRL 600. 

Now, brought back as Bolsa Família under Lula’s third term, the program not only maintained the higher monthly benefit, but also introduced an additional monthly amount per child and pregnant woman. The...