RIO DE JANEIRO, July 31 (Xinhua) -- The Brazilian government announced on Friday a 10 percent rise in benefits of Bolsa Familia, the family stipend program.

    The rise, which goes into effect starting September, is designed to increase the purchasing power of Brazil's poorer population amid the international financial crisis and offset accumulated inflation in the past 12 months.

    The minimum benefit will rise from 62 to 68 reais (33 to 36 U.S. dollars), and the variable benefit, paid according to the number of children in the household, will rise to 22 reais (12 dollars) for each child and 33 reais (17 dollars) for each teenager. The measure would benefit 11 million families.

    Bolsa Familia, or Family Allowance, the government's main welfare program, will cost an estimated 1.19 billion reais (639 million dollars) per year. As the rise was not foreseen by this year's federal budget, the government will have to request extra credit to Congress to guarantee the payment of all benefits.

    However, Budget and Management Minister Paulo Bernardo stressed that the extra money is necessary due to the increase in the number of families included in the program.

    The Bolsa Familia, set up in 2003, is the largest cash transfer program in the world. It provides financial aid to poor families on condition that their children attend school and meet some other requirements.

    The program is widely regarded as having contributed much to President Luiz Inacio Lula da Silva's high approval ratings, which hit 80 percent earlier this year.

Special Report:  Global Financial Crisis