The phrase "All For Vaccines" is seen on Sao Paulo's Sambadrome as carnival celebrations were cancelled due to the coronavirus disease (COVID-19) pandemic in Sao Paulo, Brazil February 13, 2021. Picture taken with a drone. REUTERS/Amanda Perobelli
RIO DE JANEIRO - Brazil's government hopes to roll out a new emergency coronavirus aid package within three weeks, a source with knowledge of the plan said on Monday.
Congress will need to make sure the package, which would be worth 250 reais ($46.56) a month and last up to four months, includes measures to "compensate" the government, such as fiscal and other reforms, the source said. It was unclear whether the amount would be per person or per family.
"It should be approved in three weeks," said the source, speaking on condition of anonymity. "It is necessary to fight the pandemic without breaking budgets, especially in an environment of inflation, unemployment ... snowballing debt."
The Brazilian government's lavish fiscal support package last year ensured the economy did not shrink nearly as much as many feared at the onset of the pandemic. The measure, which ended at the start of this year, bolstered President Jair Bolsonaro's support, and is seen as crucial to safeguarding poorer families with no sign that the pandemic is ending soon.
While it saved lives and limited the economic recession, the program came at a financial cost. Brazil reported a record primary budget deficit of 743.1 billion reais ($138 billion) last year, as the crisis-fighting expenditure saw total outgoings surge by a third and the economic slump hit revenues.
Congress is expected to be willing to expand the emergency measure. The source said the next few days would be decisive for Congress to act.
The Economy Ministry did not immediately respond to a request for comment.
