In a move to safeguard social welfare funds, Brazil’s Federal Court of Accounts has prohibited their use for gambling activities, following a request from the Attorney General’s Office.
In November, Brazil’s Federal Supreme Court held a two-day hearing and subsequently voted to maintain an emergency injunction issued by Minister Luis Fux, which immediately prohibits the use of social welfare funds, including those distributed through the Bolsa Família program (a conditional cash transfer program for low-income families), for betting.
Following a Supreme Court ruling, the Attorney General’s Office (AGU) appealed the ban on using social welfare funds for gambling, claiming inadequate resources to distinguish these funds from other betting money. The AGU stressed its support for the objective of the ban but sought a “reasonable period” for effective implementation. Subsequently, Court of Auditors minister Jhonathan de Jesus instructed the ministries of finance, sports, and development and the Caixa Econômica Federal bank to immediately reinstate the ban and give them 15 days from December 15th to deliberate and act.
Jhonathan de Jesus, the minister of Court of Auditors, mentioned:
The allocation of funds to betting, an activity that does not contribute to meeting basic needs or overcoming poverty, violates these objectives and compromises the effectiveness of the public policy of social assistance.
Following a report from the Central Bank of Brazil indicating that 20% of Bolsa Família funds distributed in August were used for online betting, the Attorney General’s Office (AGU) has argued that the government lacks the authority to dictate how recipients spend the money once it has been transferred. Supporting this claim, the AGU cited data from the National Secretariat of Citizen Income (Senarc), which found that only 1% of Bolsa Família beneficiaries withdraw their benefits using the physical card, while the vast majority (99%) access the funds via online bank accounts that can also receive other sources of income, such as salaries.
The Attorney’s General Office mentioned:
Therefore, it is essential to understand that a possible blocking of the account invades the private sphere, where the citizen moves other income.
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