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BRIEFSeptember 5, 2023

New Bolsa Familia: Challenges and Opportunities for 2023

A beneficiary of Bolsa Familia, a Brazilian conditional cash transfer program, shows her card. Photo by Roberta Aline/MDS

Roberta Aline/MDS

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This technical note discusses the challenges and opportunities faced by the Ministry of Development, Social Assistance, Family, and Hunger Alleviation (Ministério do Desenvolvimento e Assistência Social, Família e Combate à Fome, MDS) in reshaping and implementing the new Bolsa Família Program (BF) at the beginning of 2023, along with the initial measures adopted. Among the main challenges are the reduced fiscal space due to the growth of income transfer programs during the pandemic, the reduction of complementary social assistance services, potential losses in program effectiveness due to changes in benefit structures, and operational challenges. The technical note also highlights the government's initial actions to address these challenges and presents recommendations to improve the program, including fiscal improvements, increased social assistance services, and adjustments to program parameters. These measures aim to ensure the continued effectiveness of BF in reducing poverty and promoting social inclusion in Brazil.