São Paulo – Brazil’s federal, states and local governments had a combined primary deficit of BRL 12.816 billion (USD 3.957 billion) in July. It was the poorest result for the month since records started being kept in 2001. The primary deficit means spending outweighed revenues, and it does not include government debt expenses.
The Brazilian Central Bank said this Wednesday (31) that the year-to-date deficit is BRL 35.592 billion (USD 10.991 billion). The comparable period of 2015 had seen a BRL 6.205 billion surplus. The Central Bank’s Economic Department chief Túlio Maciel believes the July and year-to-date deficits in 2016 came as a result of economic contraction, which led to reduced tax collection, thereby causing revenues to shrink.
*Translated by Gabriel Pomerancblum
