A recent study, "Basic Income: A Long-Standing Debate," authored by economists Gabriel Barros, Cléo Olimpio, and Matheus Caliano, indicates that Brazil's primary social benefits will cost approximately R$ 550 billion in 2026, which accounts for 4.3% of the country's GDP. This analysis reveals issues of duplicity and fraud within the current structure of social assistance programs, necessitating a critical evaluation of existing approaches.

In reaction to these findings, Finance Minister Fernando Haddad has proposed a new framework for managing social spending, suggesting the unification of various programs as a solution to streamline expenditures and enhance efficiency. Drawing a parallel to the changes initiated by former President Lula in 2003, Haddad indicated that the current system's complexity could be simplified by adopting a consolidated model akin to the Bolsa Família program, which successfully unified various benefit schemes.

The economist's study points out that Brazil's extensive social spending framework currently features multiple entry points and varied criteria for program eligibility. This complexity not only increases bureaucratic overhead but also heightens the risk of fraud, thereby calling for an urgent reevaluation of Brazil's financial commitments to social welfare. Haddad's proposal signals an intention to address these inefficiencies head-on and potentially reshape the landscape of social support in Brazil.