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Emergency aid must be paid before December of this year. Immediately after the benefit payment, the government’s intention is to launch a new program. The expectation is that by then the Citizen Income is created.
The new program should replace Bolsa Família and be a kind of continuation of emergency aid. However, the government is currently facing difficulties in defining how to finance Citizen Income. After speaking publicly about Citizen Income for the first time and considering ways of financing, the market did not react well and the government backed down.
Paulo Guedes, Minister of Economy, said recently that there will be no more extensions of the emergency aid and that it will definitely end at the end of this year.
According to Lauro Jardim, from the newspaper O Globo, the president warned Guedes about the substitute for emergency aid. According to the columnist, the president stated that the replacement, which should begin to take effect in January 2021, cannot be less than R $ 300 per month, the current amount of residual emergency aid.
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Launch of the program
The final version of the Renda Cidadã program can only be presented after the municipal elections, according to Senator Márcio Bittar (MDB-AC), rapporteur of the proposal.
“Anything can happen after the elections,” a source involved in the talks told Reuters.
The new program has been one of the current points of conflict between the Minister of Economy, Paulo Guedes, and Congress. After endorsing, the minister denied having agreed with the program’s recent form of financing, which provided for the use of Fundeb and precautionary resources.
