Brasília – The government wasn’t able to save to pay the interest rates of the public debt in May. According to data from the Brazilian Central Bank (BC) released this Tuesday (30th), the consolidated public sector – federal, state and local governments and state-owned companies – posted a primary deficit of R$ 6.9 billion (US$ 2.22 billion) last month. In May of last year, the deficit was higher: R$ 11 billion (US$ 3.5 billion). In the first five months of 2015, there was a primary surplus of R$ 25.5 billion (US$ 8.21 billion) over R$ 31.5 billion (US$ 10.1 billion) in the same period of last year. Spending with interest rates that incur on the debt reached R$ 52.9 billion (US$ 17 billion) in May and R$ 199 billion (US$ 64.1 billion) in the first five months of the year.
Year-to-date through May, the public sector recorded a primary deficit of R$ 38.5 billion (US$ 12.4 billion), which amounts to 0.68% of the Gross Domestic Product (GDP), the sum of all goods and services produced in the country. The primary surplus, the savings of resources to pay the interest rates of the public debt, helps to contain the government’s indebtedness in the medium and long-term. For this year, the primary surplus target for the public sector amounts to R$ 66.3 billion (US$ 21.3 billion) or 1.1% of the GDP.
*Translated by Sérgio Kakitani
