News

Primary federal deficit a record

28 de julho de 2016

The Brazilian federal government had a USD 9.9 billion deficit in the first half of 2016.

Brasília – Plummeting revenues and growing expenses led Brazil’s Central Government (National Treasury, Social Security and Central Bank) to weather the widest primary deficit ever for a first half, at BRL 32.521 billion (USD 9.911 billion), a much wider number than H1 2015’s BRL 1.76 billion (USD 536.4 million) deficit.

The primary deficit is a measure of government deficit that does not factor in debt interest payments. In June alone, the Brazilian Central Government incurred a BRL 8.802 billion (USD 2.862 billion) deficit, in the third straight June with a deficit – the widest ever for the month. June 2015 saw a BRL 8.249 billion (USD 2.514 billion) deficit.

The June deficit could have been worse if it weren’t for BRL 5.2 billion (USD 1.5 billion) in revenues from the renewal of hydroelectric plant concessions following a November 2015 auction where the government grossed BRL 16 billion (USD 4.8 billion), of which BRL 11 billion (USD 3.3 billion) had been paid to the National Treasury in January.

*Translated by Gabriel Pomerancblum