News

Government deficit at USD 5.3 billion

29 de junho de 2016

The federal, states and municipal governments incurred the widest primary deficit on record for a May last month, the Brazilian Central Bank reported.

Brasília – Brazil’s federal, state and municipal governments registered a primary deficit – i.e. revenue minus expenses, not factoring in spending on interest payments – of BRL 18.125 billion (USD 5.379 billion at current exchange rates) in May 2016, the Brazilian Central Bank reported this Wednesday (29). It was the widest primary deficit for a May since record-keeping began in December 2001. In May 2015, a BRL 6.9 billion (USD 2 billion) primary deficit was registered.

The 12 months through May saw a BRL 150.510 billion (USD 44.6 billion) deficit, tantamount to 2.51% of Gross Domestic Product (GDP) – the sum of all goods and services produced in the country. In the five months through May, a primary deficit of BRL 13.714 billion (USD 4 billion) was posted, whereas from January through May 2015 there was a primary surplus of BRL 25.547 billion (USD 7.5 billion).

*Translated by Gabriel Pomerancblum