Brasília – The consolidated public sector – federal, state and municipal governments and state-owned companies – recorded a primary surplus of R$ 5,429 billion (US$ 2.4 billion) in June, disclosed the Central Bank of Brazil on Tuesday (30). In the same month last year, the result was R$ 2.794 billion (US$ 1.2 billion). In the first half, the primary surplus reached R$ 52.158 billion (US$ 23 billion), lower than in the same period last year, which was R$ 65.659 billion (US$ 29 billion).
In the 12 months ending in June, the primary surplus reached R$ 91.450 billion (US$ 40.5 billion), which represents 2% of all Brazil produces – the Gross Domestic Product (GDP). The primary surplus refers to savings for public debt servicing. The fiscal effort allows for a medium- to long-run reduction in government indebtedness. Since the end of the 1990s, the government has been following a primary surplus target.
The joint head of the Economic Department at the Central Bank, Fernando Rocha, confirmed the organisation’s belief that the current fiscal policy is expansionary (greater public spending and lower taxes). “The Central Bank parameters show that the public sector balance is expansionary.”
*Translated by Mark Ament
