the extension of aid if there is a second wave is not a possibility, it is safe

Economy Minister Paulo Guedes said the government will extend emergency aid if there is a second wave of the coronavirus pandemic in Brazil.

“The extension of emergency aid if there is a second wave is not a possibility, it is certain. If there is a second wave of the pandemic, Brazil will react as it did the first time. We are going to declare a state of public calamity and we are going to recreate emergency aid, ”he said.

According to the minister, this is not the expectation, but it is foreseen by the economic team as a contingency.

“Plan A for emergency aid ends on December 31 and returns to Bolsa Família. The pandemic is going down, emergency aid is going down. The renewal of emergency aid is not our working hypothesis, it is the contingency ”, he added.

In a virtual event organized by the Brazilian Association of Supermarkets (Abras), Guedes said that, if the extension is necessary, the idea is that the country will spend less than in the first confrontation of the pandemic. “Instead of spending 10% of GDP, we could spend 4%,” he added. “Brazil is going to break both waves, we are going the other way.”

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Guedes went on to say that the economic team’s plan was an emergency aid to “land” on Bolsa Família or Renda Brasil, which is still under study. “Politically, Renda Brasil’s program was not considered satisfactory by the president. In the middle of the election, it was not the time to have this discussion, “he added.

The minister affirmed that the amount of emergency aid, which was initially R $ 600, was higher than expected, which was up to R $ 400. For Guedes, the R $ 600 may have been an “exaggeration”, but He said that he does not regret it because the benefit was important for the reaction of the economy.

Threat of ‘social chaos’

Guedes also said that Brazil suffered a threat of “social chaos”, which did not occur because there was no shortage of products on supermarket shelves. “Brazil resisted because the field continued to produce and the supermarket chain kept the population supplied during this period. The supermarket chains kept the economy going, ”he said.

The minister went on to say that the economy is coming back strong “like a hibernating bear.”

He said this month’s tax collection is “extraordinary,” as are other leading indicators. “Although I was optimistic, I was surprised by the speed with which the Brazilian economy is returning,” he added.