Key facts
- President Luiz Inacio Lula da Silva pledged free weekend public transport nationwide.
- The program will be funded through congressional budget earmarks.
- Lula faces Senator Flavio Bolsonaro in a runoff on October 25.
- Economists warn the pre-election measures could increase investor anxiety over public finances.
- The Senate approved a measure ending the six-days-on, one-day-off work schedule.
- Recent measures include debt forgiveness for small entrepreneurs and expanded fuel subsidies.
Brazilian President Luiz Inacio Lula da Silva announced on Thursday a plan to send Congress a constitutional amendment for free weekend public transport nationwide. This initiative is part of a series of voter-friendly measures implemented as the presidential runoff election approaches on October 25. Lula, who is narrowly trailing Senator Flavio Bolsonaro in polls after an unexpected first-round result, aims to boost household purchasing power, particularly for lower-income Brazilians, amidst rising debt and debt-servicing costs. Economists have expressed concerns that the expanding pre-election spending package, without offsetting cuts, could heighten investor anxiety regarding public finances and increase borrowing costs. The Senate recently approved a measure to end the six-days-on, one-day-off work schedule, providing Lula a legislative win. Other recent measures include debt forgiveness for small entrepreneurs, expanded fuel subsidies, and increased Bolsa Familia benefits.