Brasília – Declining revenues and rising mandatory spending have caused Brazil’s "Central Government" (National Treasury, Social Security and Central Bank) to post its biggest quarter-one primary deficit in history. From January to March, the deficit reached BRL 18.216 billion. In March alone, it reached BRL 7.943 billion, the highest number for the month since record-keeping began in 1997.
The figures provide insight into the deterioration of public accounts in 2016. In 2015, the central government had registered a primary surplus (i.e. savings used for paying interest on government debt) of BRL 1.504 billion in March, and a BRL 4.493 billion surplus in quarter one.
From January through March, Central Government net revenues dropped 3%, discounting inflation measured by the Extended National Consumer Price Index (IPCA). The primary reason was an 8.3% drop (inflation discounted) in Federal Revenue collection, as a result of recession.
*Translated by Gabriel Pomerancblum
