Brasília – The consolidated public sector – federal, state, municipal government and state-owned companies – posted a primary deficit for the second month in a row. In June, the primary deficit reached US$ 937.39 million (or R$ 2.1 billion). In May, the deficit ran at US$ 4.93 billion (or R$ 11.046 billion). This was the first time in the Brazilian Central Bank’s (BC) historical series that a primary deficit was posted in the month of June. The historical series was initiated in December 2001. Last June posted a primary surplus of US$ 2.423 billion (or R$ 5.429 billion).
With these results, H1 primary surplus is running at US$ 13.114 billion (or R$ 29.380 billion), as against US$ 23.282 billion (or R$ 52.158 billion) posted in H1 2013. In the twelve-month period ended June, primary surplus reached US$ 30.589 billion (or R$ 68.528 billion), the equivalent to 1.36% of the Gross Domestic Product (GDP), i.e. the sum of all goods and services produced in the country. The target for the public sector this year is 1.9% of the GDP. Primary surplus is savings to pay interests on public debt. The fiscal effort allows for a medium- to long-run reduction in government indebtedness.
Last month, the negative result was driven mainly by the Central Government (National Treasury, Social Security and Central Bank). The primary deficit ran at US$ 1.219 billion (or R$ 2.732 billion). State governments posted a primary deficit of US$ 76.33 million (or R$ 171 million) and the municipal governments a surplus of US$ 126.77 million (or R$ 284 million). State-owned companies, not including the groups Petrobras and Eletrobras, posted a primary surplus of US$ 231.22 million (or R$ 518 million).
*Translated by Rodrigo Mendonça
