Lula Announces $57 Billion Spending Package Ahead of Runoff

President Luiz Inácio Lula da Silva implemented a spending package totaling nearly 300 billion reais ($57 billion) for 2026 and 2027 as he campaigns for re-election. The measures include a 15% increase in Bolsa Família payments for 20 million families, fuel tax cuts, free weekend public transportation, and debt forgiveness for micro-entrepreneurs. These increases come as Brazil's public debt reaches 82% of GDP.

Lula remains in a statistical tie with Senator Flávio Bolsonaro ahead of Sunday's runoff vote. While Bolsonaro has promised deep spending cuts of 250 billion reais, he stated he would maintain core social programs. The two candidates are scheduled for a final televised debate on Friday.

Parallel to the economic platforms, the candidates entered a dispute over transparency. Lula challenged Bolsonaro to lift secrecy over his family's assets and phone records. Bolsonaro responded by conditioning the release of his data on Lula expanding the disclosure to include his advisors, security staff, and companies owned by his children. Camilo Santana, a representative for Lula's campaign, announced that the president has agreed to these terms and will file a response with the electoral court on Thursday.

Both candidates face legal scrutiny. Bolsonaro is under investigation for alleged money laundering and corruption involving banker Daniel Vorcaro, while Lula's son, Fábio Luís da Silva, is under investigation for alleged influence peddling and pension fraud.