Brasília – The Brazilian federal, state and municipal governments have saved 13.6 billion reals (US$ 8.5 billion) for payment of interest on the public debt in March, according to the Tax Policy Report issued this Friday (29) by the Central Bank. This is the best result for the month since records started being kept, in 2001. The so-called Central Government (which comprises the National Treasury, the Central Bank and the Social Security) economized 9.676 billion reals (US$ 6.1 billion) and regional governments, 4.436 billion reals (US$ 2.7 billion). State-owned companies recorded a 511 million real (US$ 322 million) deficit.
This economy, known as consolidated fiscal surplus, was 71.86% greater than the 7.913 billion reals (US$ 4.9 billion) saved in February, but lower than the 17.748 billion reals (US$ 11.1 billion) recorded in January. Year-to-date, the consolidated primary surplus of the public sector stands at 39.262 billion reals (US$ 24.7 billion), and over the last 12 months it has reached 121.9 billion reals (US$ 76.8 billion), equivalent to 3.23% of the Gross Domestic Product (GDP), the sum of all wealth produced in the country. The government’s target is to record a 117.9 billion real (US$ 74.3 billion) surplus by the end of 2011.
The Central Bank’s report also highlights that debt interest expenses reached 20.549 billion reals (US$ 12.9 billion) during the month, 7.5% more than the 19.115 billion reals (US$ 12 billion) spent on debt interest in February. Year-to-date, spending on interest has reached 58.945 billion reals (US$ 37.1 billion), as against 40.490 billion reals (US$ 25.5 billion) during the same period of last year. Over the last 12 months, spending on interest totalled 208.913 billion reals (US$ 131.7 billion), equivalent to 5.53% of the GDP.
The upward trend for spending on interest in relation to the primary surplus has been driven mostly by rising inflation over the last six months and resumption of increases in the benchmark interest rate (Selic).
*Translated by Gabriel Pomerancblum
