Brasília – The partial collection of renewal fees for hydroelectric plant concessions enabled Brazil’s Central Government (National Treasury, Social Security and the Central Bank) to post its first primary surplus in nine months. The January surplus was BRL 14,835 billion (USD 3,737 billion), the fourth biggest ever for the month. The numbers were released this Thursday (25) by the National Treasury.
In the 12 months ended January, however, the Central Government had a BRL 110,570 billion surplus (USD 25,337 billion), the worst result for the period since record-keeping began, in 1997. The primary surplus is savings earmarked for paying interest on the public debt. In the medium term, the fiscal effort helps keep the national debt in check and allows the federal government to meet its obligations.
The single biggest factor in achieving a surplus was the collection of an BRL 11 billion installment from the hydroelectric plants concession auction held in November 2015. The funds were due last year, but there were delays in the approval by the National Congress of a provisional measure ensuring compensation for the concessions.
*Translated by Gabriel Pomerancblum
