Brasília – Brazil’s federal, states and municipalities’ governments registered a primary surplus in January, at BRL 36.712 billion (USD 44.607 billion), up from BRL 27.913 billion (USD 9,107 billion) in January 2016, the Central Bank reported this Friday (26). It was the highest result for the month since record-keeping began in December 2001.
The joint chief of the Central Bank’s Economic Department, Fernando Rocha, said surpluses are common in January because administrations have greater control over expenses. “Tax collection peaks, not all budgets have been approved, and control over spending is more effective. Because new mayors are taking office, some with stricter fiscal control agendas and others ascertaining what situation the municipalities find themselves in, some do auditing,” he said.
But the scenario is unlikely to repeat itself throughout the year. The government’s target for this year is a BRL 143.1 billion (USD 46.6 billion) primary deficit.
Spending on nominal interest reached BRL 36.413 billion (USD 11.881 billion). A nominal surplus of BRL 299 million (USD 97.5 million) was also registered – the number comprises the primary result plus interest results.
*Translated by Gabriel Pomerancblum
