With only five months before the election Brazilian President Dilma Rousseff announced lower taxes for workers and a hike in stipends for the poor on Wednesday after her popularity with voters becomes lower, according to Reuters.
Rousseff said she signed a decree to lower the income tax burden on workers and a 10 percent increase in the value of the Bolsa Familia family stipend program for millions of Brazilians during a speech Labor Day weekend, Reuters reported.
Many of the lower class voters who benefited from rapid economic growth and expanded social safety net programs under former President Luiz Inacio Lula da Silva, are the main electoral base for Rousseff's center-left Workers' Party, according to Reuters.
"This will be an important indirect salary gain and more money in the pockets of workers," Rousseff said, according to Reuters. "I also vow to continue with policies that increase the minimum wage, which has brought so many benefits for millions of workers."
With Brazil's weakening fiscal accounts, Rousseff did not male immediately clear what impact the new decree could have, Reuters reported. The decree will increase the amount of assistance a family receives from the government, and most workers will also end up paying less income tax.
Due to concerns about high inflation, and after a scandal surrounding Brazil's oil company, support for Rousseff has lowered, increasing the chances her rivals can force a runoff in the October 5 elections, Reuters reported.
A poll released this week shows Rousseff is still a favorite, with 37 percent of those surveyed said they intend to vote for Rousseff, compared to 43.7 percent in February, indicating the election race may be tougher than initially thought for the left-leaning leader, according to Reuters.
