Brazil plans to use its $3.5 billion oil fund to support its economy as President Lula’s approval ratings have plummeted due to rising inflation and food prices. Recent polls indicate falling approval and increasing negative perceptions of his administration. A new committee will oversee fund allocation while Lula advocates for oil drilling in the Amazon to finance a shift towards green energy.
Brazil is poised to utilize its $3.5 billion social fund to invigorate its economy as President Luiz Inacio Lula da Silva faces unprecedented low approval ratings. This fund, generated from oil and gas revenues, has seen a marked decline in Lula’s popularity due to rising inflation and food prices affecting Brazilian citizens. Recent polling by Datafolha revealed that approval for Lula’s administration plummeted to 24%, a significant drop from 35% in December, marking the lowest support during his terms.
The perception of Lula’s administration has worsened, with those rating it as deficient rising from 34% to 41%. In response, the government has proposed a committee to oversee the fund’s allocation, determining whether to apply the funds for general budget support or reallocate them for specific projects, as stated by a finance ministry representative to Bloomberg.
Despite his government’s challenges, Lula remains committed to advancing oil drilling initiatives in the Amazon. He is advocating for regulatory approvals, asserting that the potential revenues from these fossil fuel projects could facilitate Brazil’s transition to renewable energy sources. Lula remarked, “I want it (oil) to be explored. But before exploring, we need to research and see if there is oil and how much oil there is,” emphasizing the need for thorough investigation before extraction. He criticized the Environmental Agency, Ibama, suggesting that it appears to be obstructing governmental objectives.
In summary, Brazil is looking to leverage its $3.5 billion oil fund to strengthen its economy amid President Lula’s plummeting approval ratings, driven largely by inflation and rising food costs. Lula’s government is establishing a committee to manage this fund’s allocation while simultaneously advocating for oil drilling in the Amazon as a means to generate future revenue. Lula’s assertive stance indicates a focus on balancing economic recovery with environmental considerations.
Original Source: oilprice.com
