Brasília – The savings of the federal, state and municipal governments for coverage of debt interest, the so-called primary surplus, totalled 13.370 billion Brazilian reals (US$ 8.6 billion) in June, according to the Central Bank of Brazil. The figures were disclosed on Friday (29). This is the greatest result in the Central Bank series, which started in 2001. In the same period of last year, the total had been 2.179 billion reals (US$ 1.4 billion).
In the first half, the primary surplus reached 78.190 billion reals (US$ 50 billion), against 42.056 billion reals (US$ 27 billion) in the same period in 2010. In the 12 months ending in June, the primary surplus was R$ 137.830 billion, which corresponds to 3.54% of the country produce – the Gross Domestic Product (GDP). The primary surplus target for the year is 117.9 billion (US$ 75 billion).
In June, expenses with debt interest totalled 18.988 billion reals (US$ 12.1 billion) and reached 119.748 billion reals (US$ 76.6 billion) in the first six months of the year, against 92.205 billion reals (US$ 59 billion) in the first half of 2010. In the 12 month period up to last month, expenses with interest totalled 222.912 billion reals (US$ 142.5 billion), which answers to 5.73% of GDP.
According to the BC report, greater expenses with interest this year as against 2010 were influenced by the higher Broader Consumer Price Index (IPCA) and by the higher benchmark interest rate, Selic, which greatly influence government bonds.
*Translated by Mark Ament
