By Bernardo Caram
BRASILIA (Reuters) – Brazil’s Economy Ministry is evaluating a temporary increase of the government’s Auxilio Brasil welfare program to help people deal with economic impacts stemming from Russia’s invasion of Ukraine, two officials told Reuters on Monday.
The social program, which pays monthly installments of around 400 reais ($78.09) to approximately 18 million families, would be temporarily adjusted if the conflict persists and rising oil prices keep fanning inflation, the sources said.
Brazilian President Jair Bolsonaro faces an uphill re-election battle in this year’s presidential election, with voters concerned by rising prices and a weak economy.
The plan is currently viewed as a backup, the sources said, and has not yet been formally designed, with no defined value for any eventual increase.
The authorization of this additional benefit would depend on Brazil declaring a public emergency to make the expenses viable, said one source.
Russia’s invasion of Ukraine, which Moscow calls a “special operation,” has led to sharp increases in fuel prices that are stoking double-digit inflation, as well as causing fertilizer supply headaches for Brazil, a major global food supplier.
($1 = 5.1224 reais)
(Reporting by Bernardo Caram; Writing by Carolina Pulice Editing by Isabel Versiani and David Gregorio)
