Zona de Azar Brasil – Brazil: Project Defines Expenses That Can Be Covered by Bolsa Família

Brazil.- October 23, 2024 www.zonadeazar.com The financial benefits of Bolsa Família will be paid through a payment card and can only be used to cover expenses directly related to the program’s goals, with the purchase of alcoholic beverages, cigarettes, electronic gambling, and other prohibited products. The funds can only be spent on purchasing food, clothing, medicine, gas, and utility services such as water, sewage, electricity, and internet.

This is established by Bill (PL) 3.739/2024, authored by Senator Cleitinho (Republicans-MG), which amends Law 14.601 of 2023, which created Bolsa Família. The text will still be distributed to thematic committees.

Justifying the project, Cleitinho argues that disbursing public funds in the form of a deposit into an account that allows cash withdrawal or electronic transfer with full freedom could lead to the misuse of funds on products and services that do not contribute to achieving the program’s goals.

“Spending on cigarettes, drugs, alcoholic beverages, electronic games, and betting are clearly deviations from the program’s purpose,” Cleitinho stated.

A recent study by the Central Bank, cited by the senator in the bill’s justification, indicates that Bolsa Família beneficiaries spent R$10.5 billion on online betting between January and August 2024.

Cleitinho also highlights that the Bolsa Família Program has aimed, since its creation under the name Bolsa Escola, to be a tool of the social assistance system, focusing on providing resources to needy families to ensure food security.

“The current law consolidates this focus by explicitly stating Bolsa Família’s objectives: fighting hunger through the direct transfer of income to beneficiary families; contributing to breaking the cycle of poverty between generations; and promoting family development and social protection, especially for children, adolescents, and young people in poverty,” the senator emphasized.

He concludes that the bill will help solidify the goals of the income transfer program.

“This bill proposes amending Law 14.601, stipulating that Bolsa Família will be paid through a payment card with restricted use to CNPJs [Corporate Taxpayer Identification Numbers] registered in CNAE [National Classification of Economic Activities] of companies selling food products, clothing, medicine, gas, and utility services like water, sewage, electricity, and internet. This change focuses the resources to meet the program’s objectives,” Cleitinho stated.

Senate Agency (Reproduction authorized with citation of Senate Agency)  Source: Senate Agency

Edited by: @_fonta www.zonadeazar.com