Brasília – Savings by the Brazilian federal, state and municipal governments to pay interest on the public debt, i.e. the primary surplus, reached 7.506 billion reals (US$ US$ 4.506 billion) in May, according to figures disclosed this Thursday (30th) by the Central Bank. In the same period of last year, the primary surplus was much lower, at 487 million reals (US$ 310 million).
In the five months of the year, the primary surplus was 64.820 billion reals (US$ 41.3 billion), as against 39.877 billion reals (US$ 25.4 billion) from January to May 2010. In the 12-month period ended last month, the primary surplus was 126.639 billion reals (US$ 80.7 billion), a figure equivalent to 3.29% of everything that the country produces – the Gross Domestic Product (GDP). The primary surplus target for this year is 117.9 billion reals (US$ 75.6 billion).
In May, the payment of debt interest totalled 22.175 billion reals (US$ 14.137), and in the five months so far this year, 100.760 billion reals (US$ 64.2 billion) were paid. From January to May 2010, spending on interest reached 76.361 billion reals (US$ 48.6 billion).
By adding up the primary surplus and the spending on interest, the nominal result is obtained. Last month, a nominal deficit of 14.669 billion reals (US$ 9.3 billion) was recorded, as against 15.855 billion in the same period of 2010. From January to May this year, the nominal deficit reached 35.940 billion reals (US$ 22.9 billion), as against 36.484 billion reals (US$ 23.2 billion) in the same period of 2010.
The Central Bank also informed that the net public sector debt was 1.531 trillion reals (US$ 976 billion) in May. The figure is equivalent to 39.8% of the GDP, the same rate as in April.
*Translated by Gabriel Pomerancblum
