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2024 Budget: Investigation of the Annual Budget Bill Proposal and Changes to Bolsa Família
The Brazilian government released the 2024 budget TODAY (31), revealing several consequences for the population, especially the increase in the Minimum Wage to R$1461. To clarify the nuances of this budget, let’s explore the most relevant points of the proposal. Recently, we mentioned the possibility of an Increase in Bolsa Família to R$710—will it be scheduled? Keep reading until the end.
Presentation of the 2024 Annual Budget Bill (LOA) Proposal
The proposal for the 2024 Annual Budget Bill (LOA), the first of this government’s current term, formally reached the National Congress on the final day for submission to the federal legislature. The health, education, and housing sectors stood out as the main focuses for the coming year. The suggested minimum wage, scheduled to take effect on January 1 of the following year, is set at R$ 1,421.00.
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Minimum Wage Review
According to the wording of the proposal, the minimum wage review strategy will resume after a six-year interval. The minimum wage will be adjusted according to the National Consumer Price Index (INPC) accumulated over the 12 months through November of the previous year, plus the growth of the Gross Domestic Product (GDP) in the preceding two-year period. This is a previously established rule designed to ensure wage increases above inflation.
Read also: Check whether you were approved for Bolsa Família 2023. Learn how to check.
Aligned Budget and Zero-Balance Objective
Planning Minister Simone Tebet emphasized the balance of the 2024 budget, aiming to achieve a deficit-free balance the following year. The proposal estimates expenses of R$ 2.093 trillion and a zero fiscal deficit, indicating that the government intends to equalize revenues and expenditures.
“We are committed to delivering a Budget to the nation aimed at achieving a zero balance next year,” the minister declared.
Response to Social and Economic Challenges
The Minister of Finance, Fernando Haddad, emphasized that the nation has the ability to respond to social and economic challenges. He expressed gratitude to Congress for its support in approving the Transition PEC and the renewed fiscal framework, among other proposals.
Haddad added that the government aims to create conditions for Brazil to achieve sustainable development with controlled inflation.
“We knew it was necessary to establish a fiscal regime that would reduce the gap between revenue and expenditure until it was eliminated,” Haddad explained.
Prudent Estimate of Revenue for 2024
The minister announced that the Federal Revenue Service adopted a cautious approach in its revenue estimates for 2024, which could eventually bring a positive return.
Feasibility of Meeting the 2024 Fiscal Target
Haddad is confident that meeting the 2024 fiscal target is feasible, given that many taxpayers agreed to payment terms and were awaiting the final decision on the legislation of the Administrative Council for Tax Appeals (Carf).
Possibility of Inflation Forecast
Simone Tebet indicated that the new fiscal framework, allowing the government to forecast inflation through the end of the year to adjust revenues, made R$ 129 billion available for 2024. However, after social security commitments and the healthcare and education spending floors, R$ 55 billion remains for the other ministries.
Enhancing Healthcare in the 2024 Budget
According to the minister, budget planning prioritized healthcare, with an increase of more than 140%. However, all ministries will maintain at least the resources allocated in 2023.
Bolsa Família Increase?
In light of the proposed changes to the 2024 budget, one of the most anticipated expectations was the likely revision of the Bolsa Família program. Bill PLN 29/2023, sent to Congress today(31), does not include the expected increase in Bolsa Família. See below the full text on Bolsa Família and Auxílio Gás for 2024:
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Bolsa Família 2024:
In 2023, the Federal Government renewed the program, providing greater protection to families. This new format takes into account the size and specific characteristics of each family when granting specific benefits, places greater value on large families, and corrects problems identified in the previous version of the program. Therefore, Bolsa Família aims to restore the dignity and citizenship of families by providing basic income to those experiencing social vulnerability, while also integrating public policies that expand access to essential services such as healthcare, education, and social assistance.
The Bolsa Família Program was created through Provisional Measure No. 1164, dated March 2, 2023, which was subsequently transformed into Law No. 14.601, dated June 19, 2023. The program focuses on combating hunger by making direct income transfers to beneficiary families, seeking to break the perpetuation of poverty between generations and promote the development and social protection of families, especially those experiencing vulnerability.
Read also: Bolsa Família Withdrawal Without Documents Shocks Brazilians
In detail, Bolsa Família provides four monetary benefits:
a) Citizenship Income Benefit, with an amount of R$ 142.00 per member of families enrolled in the program;
b) Complementary Benefit, for families whose total Citizenship Income benefits amount to less than R$ 600.00;
c) Early Childhood Benefit, of R$ 150.00, given for each child between 0 and 7 years old belonging to beneficiary families; and d) Variable Family Benefit, of R$50.00, for families with pregnant women, nursing mothers, children, and adolescents aged 7 to 18.
With a budget set at R$ 168.6 billion for 2024, the program plans to assist 20.8 million families living in poverty or extreme poverty.
Brazilian Gas Aid:
Established by Law No. 14,237 of November 19, 2021, the Brazilian Gas Aid Program was created to mitigate the impact of cooking gas costs on the budgets of lower-income families. This assistance is equivalent to a bimonthly payment representing at least 50% of the average gas price over the last six months. Additionally, the Supplementary Brazilian Gas Aid was created, providing participating families with a bimonthly amount corresponding to 50% of the average price of a 13 kg cylinder over the last six months. In 2024, the forecast is to invest R$ 3.64 billion in the Brazilian Gas Aid Program, reaching approximately 5.5 million families.
