Budget 2023 has an aid forecast of R$ 400 and does not include a review in the IR

The 2023 budget provides for Auxílio Brasil at R$400 per month and does not include an increase in the range of exemption from the income tax table, two government officials with direct knowledge of the matter told CNN.

The proposal, which has a deadline to be sent to Congress until August 31, however, maintains the forecast of cutting federal taxes on fuel and readjustment to civil servants.

So that the document does not clash with Jair Bolsonaro’s campaign promise to keep the benefit at the current level, the R$ 600 Aid is expected to appear as a government commitment in the presidential message to Congress.

The same expedient is also the one planned to be used in the case of the revision of the Income Tax table.

As CNN showed, despite Bolsonaro’s statements, the economic team did not see how to fit the measures into the budget piece.

To increase Auxílio Brasil from R$400 to R$600, around R$55 billion more is needed. There is no space within the spending ceiling for this, according to members of the Economy.

The plan of Paulo Guedes’ team is to link both the increase in Auxílio and the expansion of the number of those exempt from income tax to the tax reform. Therefore, it was agreed with Palácio do Planalto that both actions will be expressed in the text as a compromise, but there is no provision for them to be included in the budget proposal itself.

The text provides, however, two important nods to the president. The first is the maintenance of the cut in fuel taxes. Like the increase in Auxílio Brasil, the measure is only valid until the end of this year.

Another forecast is to give a readjustment to officialdom. The government hit the hammer on including the increase. The plan is for it to be equivalent to expected inflation for next year.