Brazil's Lula registers early win on social spending

Brazilian president-elect Luiz Inacio Lula da Silva has scored an early parliamentary victory with Senate approval of a constitutional amendment that authorizes extra spending for social welfare payments.

If late Wednesday's vote is followed by lower house approval, the additional funds would enable the 600 reais (115 dollars) allowance paid to the poorest families to be made permanent.

It was introduced in August under far-right President Jair Bolsonaro.

Lula, who will begin his term on January 1, has also pledged to pay a monthly bonus of 150 reais for each child.

Lula's incoming left-wing government has raised business fears that budgetary limits will be neglected to finance its social programs.

The bill gives the next government $26 billion over two years above the previous spending limit to finance the programs to support the poor.

More than 33 million Brazilians suffer from hunger, and the purchasing power of the poorest has been severely damaged by the Covid-19 crisis and inflation.