Temer to Inject Almost US$5bn into Brazilian Economy
September 29, 2017
On 28 September, Brazil’s President Michel Temer issued a presidential decree lifting the restrictions on the advance payments of PIS/Pasep benefits paid to low-income pensioners.
According to Temer, the measure will inject R$15.9bn (US$4.9bn) into the domestic economic, which should help to boost consumption. Eight million people are set to receive PIS/Pasep benefits now that that the decree has lowered the minimum age of withdrawal from 70 years for both sexes to 65 for men and 62 for women. The Temer government said that the measure is designed both to boost domestic consumption and to help ease financial pressure on lower-income households.
- Brazilian citizens over 70 years of age of with low pensions are able access PIS/Pasep benefits. Under the decree, these individuals will receive these benefits as normal from 19 October. But the decree also calls for additional resources to be freed up for so that newly retired workers can claim these benefits on 17 November; and women over 62 and men over 65 can access them from 14 December.
- The move to free up more PIS/Pasep funds is “inspired by the success of the liberation of workers severance funds”, Temer said during a speech at the Planalto presidential palace. He was referring to another initiative implemented by his government in March, which injected over R$60bn (US$18.9bn) into the domestic economy. This helped boost consumption by 0.7% in the second quarter of the year compared to the same period last year.
The government is hoping that the new initiative will have a similarly positive economic impact to the pay out of severance packages, and perhaps even his public approval. The government’s recent flurry of efforts to boost the economy has not yet improved Temer’s approval ratings, which are currently stagnating at 3%.
This feature was provided to EMIA by our editorial partner LatinNews.