Budget rapporteur confirms $2.5 billion cut in "Bolsa Família" program

Deputy Ricardo Barros, member of the Progressive Party (PP) and responsible for the 2016 budget report, confirmed today (Dec. 11) a cut of $2.5 billion in the Bolsa Família conditional cash transfer program, a cut of 35%.

Deputy Ricardo Barros's final report shall be submitted to the Joint Budget Committee (CMO) on Monday (Dec. 14) or Tuesday (Dec. 15). According to him, there are few adjustments to be made this weekend or Monday, so that the report can be discussed and voted by the committee and then by the full Congress.

In the proposal to be submitted to the CMO, Ricardo Barros included $2.5 billion of funds collected by bringing back the old CPMF (Provisional Tax on Financial Transations). However, the bill to bring back the tax has not been approved by the lower house's Committee on Constitution and Justice (CCJ). For the rapporteur, the proposed cuts are necessary to be in line with the forecast of $8.9 billion surplus target, equivalent to 0.7% of GDP.

Ricardo Barros also said that the proposal outlines that new members will not be joined to the Bolsa Família program next year. According to him, every year around 700 thousand families exit the program. The rapporteur declared that he does not oppose the program, "which has already helped many Brazilians leave poverty, but there are weaknesses in management strategies." However, he ensured that there will be no loss on any person properly observed by the law.

Based on macroeconomic parameters sent in November by the government, the report forecasts for 2016 a negative GDP of 1.9%, a 6.47% inflation measured by the National Broad Consumer Price Index (IPCA), dollar at R$4.09 and the SELIC rate at 13 99.

Translated by Amarílis Anchieta