Lula increases social spending ahead of tight election
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Luiz Inácio Lula da Silva is directing government funds to support vulnerable citizens and key worker groups in Brazil before the presidential runoff election.
Twenty million families in poverty will receive increased payments from the Bolsa Família program this week, a 15% increase announced in September. Lula has introduced a broad package of aid, subsidies, and pay increases totaling almost 300 billion reais ($57 billion) for 2026 and 2027, increasing Brazil’s public debt to 82% of its GDP.
Lula’s campaign is focusing on regaining support from working-class voters who have recently shifted toward his opponent, Senator Flávio Bolsonaro. He has promised microentrepreneurs a payment of $1,000 and debt forgiveness, reduced fuel taxes, and free weekend public transportation. The government also launched a new debt relief program and announced free obesity injections within the public health system. Bolsonaro, who promises spending cuts, has pledged to maintain existing social programs, but has not explained how he will balance the budget.
Lula challenged Bolsonaro to disclose his family’s assets and phone records, offering to do the same. Analysts note that despite the increased spending, Lula’s poll numbers have not significantly changed, and the candidates remain in a deadlock.
