Bolsonaro speeds up payments to the poor as election looms
Brazil’s president-elect Jair Bolsonaro will roll out his plan for a 100 percent cash payments to the poor as soon as he takes office, a move that could boost the popularity of his pro-growth policies.
Bolsonaro has already taken steps to curb spending, with the first tranche of his budget for 2018-19 cutting spending in other sectors and setting spending priorities for the next five years.
The 100-percent cash payments to the poor would be paid by an increase in tax rates, but Bolsonaro said those rates had already been cut under his predecessor, Michel Temer.
The move suggests Bolsonaro’s new budget will contain other measures to make Brazil’s economy more open for business.
In late October, he announced the tax cuts that would raise an additional R$1,500 (US$810) a month for people earning the minimum wage.
Those cuts have not yet been made into law, as Bolsonaro is expected to take a pause from his campaign.
The Bolsonaro Administration is going to be the first time in history in which cash is going to go directly to the poor, by eliminating taxes for cash, the food stamp, welfare and housing.
This will allow the poor to receive more money, which they otherwise don’t have, to improve their living, health and educational conditions.
In Brazil, many of the poorest families live in rural areas, and many don’t have access to credit. It makes them vulnerable to the effects of a drop in the value of the Brazilian real, which also makes it expensive to purchase goods in rural areas.
The company is now considering various options, including selling its core assets to keep the business afloat. Shares in San Francisco-based Uber went ex-dividend on Tuesday, and the shares have surged 4.9 percent in the past session, underperforming the broader Dow industrials and the S&P 500.
Merewether has seen an uptick in his business since she took the reins, reporting a 41 percent lift in sales in the 18 months since she became CEO. The net income jumped 30 percent to $19.6 million, above the $16.4 million in net income per share she had earned in