Budget deficit at all-time high

29 de julho de 2016

Brasilia – Brazil’s federal, state and local governments had a primary deficit – revenues minus expenses, interest payments not factored in – of BRL 10.061 billion (USD 3.074 billion) in June, the Brazilian Central Bank reported this Friday (29). This was the poorest result for a June ever since records started being kept in December 2001, and wider than the deficit of BRL 9.323 billion (USD 2.849 billion) registered in June 2015.

The H1 deficit of BRL 23.776 billion (USD 7.266 billion) was also the worst ever for a first half. H1 2015 had seen a primary surplus of BRL 16.224 billion (USD 4.958 billion). In the 12 months through June, Brazil had a primary deficit of BRL 151.249 billion (USD 46.224 billion), which was tantamount to 2.51% of Gross Domestic Product (GDP), the sum of all goods and services produced in the country.

In June 2016, the Brazilian Central Government (Social Security, the Central Bank and the National Treasury) registered a primary deficit of BRL 10.451 billion (USD 3.193 billion). State governments had a primary deficit of BRL 181 million (USD 55.3 million), with municipalities running a surplus of BRL 279 million (USD 85.2 million). Federal, state and local government-run enterprises, not including the Petrobras and Eletrobras conglomerates, posted a primary surplus of BRL 291 million (USD 88.9 million) last month.

*Translated by Gabriel Pomerancblum