Lula pledges free weekend transit nationwide as Brazil runoff nears

Brazil's President Luiz Inacio Lula da Silva announced on Thursday his intention to send Congress a constitutional amendment that would guarantee free public transport on weekends across the nation. This proposal is part of a series of measures aimed at improving the economic situation of Brazilian households as they approach the presidential runoff on October 25.

The funding for this program will come from budget earmarks in Congress, though the exact timing of the proposal's submission has not been specified. Lula currently trails right-wing Senator Flavio Bolsonaro in the first round of voting but remains in second place in recent polls. The announcement of this measure adds to a list of initiatives intended to increase household purchasing power, particularly among lower-income Brazilians, as the country grapples with high levels of debt and rising debt servicing costs.

Economists have expressed concerns that the growing package of pre-election giveaways could negatively impact Brazil's fiscal situation, potentially increasing borrowing costs and exacerbating the country's debt trajectory. Recently, the Senate approved a measure ending Brazil's six-day work week, providing Lula with another legislative victory.

Lula has also taken steps to forgive debt for small entrepreneurs and provide grants of up to 5,000 Brazilian reais, expanded fuel subsidies, and increased Bolsa Família benefits. The government has also taken steps to manage household debt by auctioning and restructuring it. Additionally, a ban on online betting operators has been implemented due to concerns about the impact of increased gambling spending on household finances.