Brasília – The Brazilian National Treasury secretary Marcelo Saintive said the federal government could run a primary deficit of roughly BRL 110 billion (USD 28.2 billion at current exchange rates) in 2015. The primary deficit means the government has spent more than it collected in revenue, and does not include payment of interest on debt.
The secretary’s primary deficit calculation includes some BRL 11 billion in revenues that might not be collected in case the hydroelectric plants auction slated for November does not take place. It also factors in the sums that must be paid by the government this year to compensate for delayed transfers of funds to public banks – which should have taken place in the first half of 2014 – concerning social benefits. According to the secretary, these payments should amount to BRL 50 billion (USD 12.8 billion).
The estimate also comprises the BRL 51.8 billion deficit concerning the 2015 budget target set by congressman Hugo Leal (affiliated with the Rio de Janeiro chapter of party PROS), overseer of the bill that changes the fiscal target for this year.
*Translated by Gabriel Pomerancblum
