Congressional Bill Would Extend R$600 Monthly Emergency Aid in Brazil Until April

RIO DE JANEIRO, BRAZIL – Bill 5650/20 prolongs the payment of emergency aid of R$600 per month as a measure to tackle the Covid-19 pandemic until April this year. The aid was introduced by Law 13.982/20 to assist people in social vulnerability during the public health emergency triggered by the disease. The bill is being processed in the Chamber of Deputies.

Paid since April 2020, with the first five installments of R$600 and the last four of R$300, the emergency aid ended on December 31st last year, along with the expiration of Decree 6/20, which recognized the health emergency situation in the country.

Deputy Chiquinho Brazão (Avante-RJ), author of the bill, considers that the social and economic benefits provided by the emergency aid should be maintained. “Although only temporarily, the benefit contributed to reducing the poverty index of the population and to maintain business activity,” says Brazão.

“Had the aid not been offered since April 2020, the poverty index would have skyrocketed to 36% during the pandemic. In addition to the population’s declining income, the end of the benefit will impact state and municipal tax collection and small local businesses,” he added.

Federal Supreme Court

An injunction granted by Federal Supreme Court (STF) Justice Ricardo Lewandowski on December 30th, 2020, ensured the extension of health measures to fight the pandemic, but did not extend the decree recognizing the state of public calamity or the payment of emergency aid.

In practice, with the end of the state of calamity, the government is again subject to the Fiscal Responsibility Law (LRF) restrictions on spending, and is forced to meet budget execution targets and debt and personnel spending limits, which significantly reduces the resources available to finance social assistance policies and emergency measures in health and the production sector.

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