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Lula pledges free weekend transit nationwide as Brazil runoff nears
In a social-media video on Oct. 15, Lula said he will send Congress a constitutional amendment guaranteeing free weekend public transport nationwide, funded through congressional budget earmarks; the government will also hold an auction to buy and restructure household debt with public funds.
Why it matters
Less than two weeks before Brazil's Oct. 25 presidential runoff, Luiz Inácio Lula da Silva — who unexpectedly trailed right-wing Senator Flavio Bolsonaro in the first round — unveiled a new round of voter-friendly pledges in a social-media video on Oct. 15: a constitutional amendment guaranteeing free weekend public transport nationwide, and an auction to buy and restructure household debt with government money. Polls show he remains narrowly behind heading into the runoff.
What was pledged
The free weekend transit pledge would go to Congress as a constitutional amendment; Lula said it would be funded through congressional budget earmarks, but did not say when he would send it. It caps a string of measures aimed at boosting household purchasing power: on Wednesday the Senate approved a government-backed measure ending Brazil's six-days-on, one-day-off work schedule; in recent days Lula announced debt forgiveness for small entrepreneurs plus 5,000-real grants for the same audience; last week his government expanded fuel subsidies, citing rising global oil prices; and less than a month ago it raised Bolsa Família benefits by 15%. Another recent move was a ban on online betting operators, amid concerns that gambling spending has strained household budgets and fueled indebtedness.
Fiscal concerns
Economists warn that with no offsetting cuts announced, the expanding pre-election giveaway package could stoke investor anxiety over public finances, lifting borrowing costs and adding pressure to Brazil's debt trajectory. The measures are aimed chiefly at lower-income households' purchasing power, as record indebtedness and rising debt-servicing costs squeeze family finances.
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