Lula turns to costly campaign pledges in Brazil runoff
After trailing Flávio Bolsonaro in Brazil's first presidential round, President Luiz Inácio Lula da Silva is promoting expensive populist measures to improve his runoff chances. His proposals include a shorter workweek and a 15% increase in the Bolsa Família cash-transfer program, which took effect days before the vote. Implementing those promises would carry significant fiscal costs for Brazil if he wins.
Lula, 80, is pursuing a fourth non-consecutive term against 45-year-old Flávio Bolsonaro, a Trump ally. Congress cleared a shift to five workdays and 40 weekly hours at unchanged pay shortly before the runoff; Bolsonaro endorsed it late, while business groups warn of higher labor costs and possible inflation or informal hiring.
The 15% Bolsa Família boost began this week and reaches nearly 50 million people, with an estimated 5.8 billion reais ($1.2 billion) cost through year-end. Lula also backed low-interest public-bank loans and debt renegotiation for small firms, plus fuel-tax relief and ethanol support.
The measures could ease immediate pressure on low-income households, workers and small firms, potentially strengthening Lula's support among beneficiaries before the runoff. They may also strain public finances, with taxpayers eventually bearing higher costs, while employers could respond to shorter hours by adjusting hiring or prices. Debt relief may bring short-term breathing room but leave financial-literacy gaps unaddressed. The overall social effect may depend on whether these steps are temporary campaign measures or durable policies.