Government Plans to Create "Citizen Income" Supported by Judicial Debt

The Brazilian government intends to maintain the proposal to limit the payment of court orders to finance the social program Renda Cidadã.

The idea could delay at least 1 million court settlements due by the Union, on average, per year.

On Monday (28), President , Minister Paulo Guedes (Economy), and party leaders announced the program, which should replace Bolsa Família. Congress, TCU (Federal Audit Court), and Bolsa reacted.

The project’s plan to use judicial debt—debts recognized by the courts—would generate an accumulation of liabilities.

Folha‘s research indicates that, from R $ 37 billion paid in 2019, the volume would fall to R $ 16 billion in 2021 according to the suggestion presented.

More than 1 million payments would have to be postponed, especially for retired private-sector employees and civil servants.

Treasury Secretary Bruno Funchal said that the market has already alerted the government. The Ibovespa fell for the second day in a row.

Translated by Kiratiana Freelon

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