Luiz Inácio Lula da Silva faces his first test less than two months before he takes office as Brazil’s president, pushing for a constitutional amendment that would allow him to fund his multibillion dollar campaign promises.
While on the stump, the leftwing veteran pledged to increase the minimum wage, create a new cash stipend for poor families with children under the age of six, as well as maintain the flagship social welfare payment at R$600 ($110) from January. Under current budget rules the payment should fall to R$405.
However, Lula has little room to manoeuvre with much of next year’s budget already earmarked by Congress and incumbent Jair Bolsonaro’s administration. He is further constrained by Brazil’s constitutionally mandated spending cap, known as the teto, which limits budget increases to inflation.