Brazil's Lula raises welfare benefit ahead of October election

The measure comes as opinion polls show Lula running neck-and-neck in a potential second-round runoff with his main challenger, right-wing Senator Flavio Bolsonaro, the son of former President Jair Bolsonaro.

($1 = 5.1560 reais)

Speaking alongside Lula at the presidential palace, Moretti said the measure would have a fiscal cost of 5.8 billion reais ($1.13 billion) in 2026 and 22 billion reais in 2027.

With the increase, the minimum monthly benefit will rise to 691 reais ($134.02), from 600 reais previously.

Brazil's Planning Minister Bruno Moretti announced on Thursday a 15% increase in cash transfers under the country's flagship welfare program Bolsa Familia, as President Luiz Inacio Lula da Silva seeks re-election in an October vote.

Bolsa Familia is a hallmark policy of Lula's Workers Party and has long been a centerpiece of its social welfare agenda.