The government wants a benefits package to be approved to offer free and beneficial services to the population only until the end of 2022, that is, until December 31st.…

With just over three months to go before the 2022 electoral process, the federal government decided to launch a package of goodies. Among them, the increase in Auxílio Brasil from R$ 400 to R$ 600 and Pix Caminhoneiro from R$ 1,000. The gas credit extension is also part of the package, which will cost R$34.8 billion. In fact, the measure exceeds the spending ceiling that limits the government budget.

This package of goodies will be included in the proposed amendment to the Constitution (PEC) on fuels. The original objective of the project was to compensate federal entities that adhered to the reduction in ICMS for diesel and gas until mid-2022.

To intensify populist measures in an election year, one of the strategies is to offer benefits to the most vulnerable population. A subsidy for free urban transport for seniors and use of resources for ethanol could add R$5 billion to spending. However, the gift package has a deadline: December 31st.

Benefits package must be blocked due to illegality

What happens is that it is expressly prohibited to authorize measures that grant benefits to the population in moments close to an election. The only way to get the goodwill package would be in a state of public catastrophe.

However, the PEC will likely face strong opposition from much of the allied base and any opposition to the government. If the package of amendments is approved, most politicians believe it will later be legalized and banned. However, there are those who believe that parts of the PEC can be used to reduce the negative impact of fuel prices and other current problems.

The project must be analyzed by the Brazilian legislature before proceeding with the licensing process.