Brasília – The consolidated primary public sector surplus (federal, state and municipal governments and government-owned companies) reached 2.794 billion Brazilian reals (US$ 1.38 billion) in June, according to figures issued by the Central Bank this Tuesday (31st). The figure was much lower than in June 2011 (13.37 billion reals, equivalent to US$ 6.59 billion at current exchange rates). The indicator is the result of the state’s revenues minus expenses, except for interest on the debt, and indicates the savings made precisely to pay such interest.
In the first half, the primary surplus stood at 65.659 billion reals (US$ 32.36 billion), lower than in the same period of 2011 (78.19 billion reals, equivalent to US$ 38.54 billion). In the 12-month period ended June, the surplus was 116.18 billion reals (US$ 57.5 billion), equivalent to 2.71% of the Gross Domestic Product (GDP). The target for this year is 139.8 billion reals (US$ 68.4 billion).
The fiscal efforts of the public sector did not suffice to cover spending on debt interest payments. Debt interest reached 16.119 billion reals (US$ 7.94 billion) in June and 111.027 billion reals (US$ 54.72 billion) in the first half, as against 119.748 billion reals (US$ 59 billion) in the same period of 2011. As a result, the nominal deficit, i.e. the primary surplus plus interest spending, stood at 13.325 billion reals (US$ 6.56 billion) last month and 45.368 billion reals (US$ 22.36 billion) from January to June.
*Translated by Gabriel Pomerancblum
