Lula claims ignorance over lack of Bolsa Família inflation adjustments

President Luiz Inácio Lula da Silva stated he was unaware that the Bolsa Família social program had not been adjusted for inflation during his administration. In an interview with TV Globo, the president claimed the oversight was “inexplicable” and stated he demanded explanations from his ministers once he discovered the situation.

Following this discovery, Lula ordered a 15.04% increase in the benefit, raising the minimum monthly payment from R$ 600 to approximately R$ 691. This adjustment was announced in September, shortly before the first round of the 2026 presidential elections. The president denied that the timing of the increase was motivated by electoral interests, asserting that the decision was made to correct the lack of inflation adjustment.

The increase was notably absent from the 2027 Budget proposal sent to Congress in August. Lula defended the government's fiscal position, noting that the budget proposal included a projected primary surplus of 0.1% of GDP and that sufficient fiscal space existed to implement the correction.