The Minister of Social Development, Wellington Dias, asked his colleague Fernando Haddad, from Finance, to spare his portfolio from the spending cuts that will be announced in the coming days and that will affect several of the Esplanada’s ministries.
In exchange, the minister’s proposal is to save another R$2 billion next year through a fine-tooth comb that the department has been carrying out since the beginning of the government.
The figure was calculated by Dias’ assistants and adds to the effort requested by the economic team to reduce R$25.9 billion from the budget in 2025.
The amount is focused on the review of the Continuous Payment Benefit (BPC) and Bolsa Família, in addition to cuts in fraud at the National Social Security Institute (INSS).
Dias’ wish was taken to Haddad on Monday (11) after the head of the economic team presented the proposal prepared by his technicians.
The Ministry of Social Development is committed to the efficiency of its own inspection measures.
Fraud worth R$34 billion
Since the beginning of 2023, when Wellington Dias took over the ministry, 3.7 million frauds have been discovered, totaling losses of R$34 billion for public coffers.
Last year’s spending forecast for Bolsa Família was R$175 billion. However, due to the fine-tooth combing carried out by the ministry, the value fell to R$168 billion.
In 2024, the forecast is that R$166.5 billion will be paid and, for 2025, R$2 billion less due to the fight against fraud and job growth.
Changes to the BPC
One of the proposals from the economic team that would be on the table would be changes to the Continuous Payment Benefit of the Organic Social Assistance Law (BPC/Loas).
The ideas start from increasing the minimum age for granting, currently at 65 years old, and correcting the values only for inflation, in addition to granting the benefit only for serious disabilities. Dias has already gone public saying that there would be no cuts in benefits.
Cortes
Haddad has not yet announced exactly which portfolios or areas will be cut. Twelve representatives from ministries have already attended meetings to discuss the issue, but six ministries – Health, Education, Labor, Social Development, Social Security and Defense, which have the largest budgets in Esplanada – are expected to see the biggest cuts.
Despite the attempt, the Treasury’s expectation is that the Ministry of Social Development’s request will not be met.
