Brasília – On the back of higher oil royalties and payments in connection with the 4th pre-salt bid round, Brazil’s Central Government (National Treasury, Social Security and Central Bank) saw the widest primary surplus for an October in three years. The Treasury reported this Thursday (29) that last month saw a BRL 9.451 billion (USD 2.444 billion) surplus.
The sum is almost double the BRL 5.073 billion (USD 1.312 billion) surplus from October 2017. Even though October 2016 saw a BRL 40.872 billion (USD 10.570 billion) surplus, that came as a result of a program for regularization of assets held abroad, also known as asset repatriation, which yielded BRL 46.8 billion to the Treasury coffers.
The October result caused the primary deficit to drop to BRL 72.323 billion (USD 18.704 billion) year-to-date through October, down from a BRL 104.493 billion (USD 27.024 billion) deficit a year ago. Government balance results – primary deficits or surpluses – do not include public debt interest payments.
The Budget Guidelines Law (Lei de Diretrizes Orçamentárias – LDO) requires the Central Government to end 2018 on a BRL 159 billion (USD 41.1 billion) primary deficit. The National Treasury expects a BRL 66.9 billion (USD 173 million) deficit in November and December, which would lead to a BRL 139.223 billion (USD 36.006 billion) whole-year deficit.
Translated by Gabriel Pomerancblum
