HomeCrime, Law and JusticeLula pledges free weekend transit nationwide as Brazil runoff nears

Lula pledges free weekend transit nationwide as Brazil runoff nears

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BRASILIA, Oct 15 (Reuters) - Brazilian ‌President Luiz Inacio Lula da Silva said on Thursday ​he will send Congress a constitutional amendment guaranteeing free weekend public transport nationwide, the ⁠latest in a series of voter-friendly measures less than two weeks before Brazil's presidential runoff.

In a video posted on social media, Lula said the program ​would be funded through congressional budget earmarks. The president did not say when exactly ‌he would send the proposal.

Lula, who unexpectedly trailed right-wing Senator Flavio Bolsonaro in the first round, remains narrowly behind in polls ahead of the October 25 ⁠runoff.

The proposal adds to a string of measures aimed at ⁠boosting household purchasing power, particularly among lower-income Brazilians, as record indebtedness and rising debt-servicing costs squeeze family finances.

The measures have also raised fiscal concerns. With no offsetting cuts announced, economists warn an expanding pre-election giveaway package could ‌stoke investor anxiety over public finances, lifting borrowing costs and adding pressure ⁠to Brazil's debt trajectory.

On Wednesday, the Senate approved ‌a government-backed measure ending Brazil's six-days-on, one-day-off work ​schedule, providing Lula a key legislative win.

In recent days, Lula has also announced debt forgiveness for small entrepreneurs, along with 5,000 Brazilian reais grants ‌targeting the same audience.

Last week, his government expanded ​fuel subsidies, citing the need ⁠to shield consumers from rising global oil prices, while less than ‌a month ago it raised Bolsa ⁠Familia benefits by 15%.

Seeking to ease pressure on household finances, the government also announced it would hold an auction to buy and restructure household debt ​using government proceeds.

Another recent ‌move was a ban on online betting operators, amid concerns that growing gambling ⁠spending has strained household budgets and ​fueled indebtedness.

(Reporting by Marcela Ayres in Brasilia and Fernando Cardoso in ​Sao Paulo; Editing by Aurora Ellis)

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