Brasília – The primary surplus, consolidated revenues minus expenses, excluding interest for debt servicing – federal government, states, cities and state-owned companies – reached 13,959 billion reals (US$ 7.5 billion), in October, informed on Friday (25) the Central Bank of Brazil (BC). In the same period last year, the primary surplus was 9.738 billion reals (US$ 5.2 billion).
In the first ten months of the year, the consolidated primary surplus of the private sector reached 118.596 billion reals (US$ 63.6 billion), as against 86.677 billion reals (US$ 46.5 billion) registered in the same period in 2010. The result is close to the primary surplus target this year, which is 127.9 billion reals (US$ 68.6 billion). In the 12 months ending in October, the primary surplus totalled 133.615 billion (US$ 71.6 billion), which answers to 3.33% of all that the country produces – Gross Domestic Product (GDP).
But the public sector’s fiscal surplus was not enough to cover costs with nominal interest (real interest plus monetary correction) that is applied to the debt. This interest reached 20.257 billion reals (US$ 10.9 billion), in October, and 197.732 billion reals (US$ 106 billion), in the first ten months. With this, the nominal deficit, revenues minus expenses, including debt servicing, totalled 6.298 billion reals (US$ 3.4 billion), last month, and 79.136 billion reals (US$ 42.4 billion), from January to October.
In October, the Central Government (Central Bank, National Treasury and Social Security) registered a primary surplus of 11.404 billion reals (US$ 6.1 billion). Regional governments (state and municipal) contributed with 2.229 billion reals (US$ 1.2 billion). State-owned companies, excluding groups like Petrobras and Eletrobras, registered a primary surplus of 326 million reals (US$ 175 million).
*Translated by Mark Ament
