Brasília – Brazil’s consolidated public sector – federal, state and municipal governments and government-run companies – has posted a primary surplus of R$ 3.729 billion (US$ 1,484 billion) in October. This was the first surplus after five consecutive monthly deficits. Though positive, the result from October is the weakest for the months since 2002, when a R$ 6.265 billion (US$ 2.494 billion) surplus was recorded.
The data have been released this Friday (27th) by the Brazilian Central Bank. Year-to-date, the public sector is running a deficit of R$ 11.557 billion (US$ 4,601 billion). In the comparable year-ago period, a R$ 51.2 billion (US$ 20.3 billion) surplus was posted. In the 12-month period ended October, the public sector primary surplus was R$ 28.595 billion (US$ 11.386 billion), equivalent to 0.56% of PIB. The primary surplus consists of savings to pay interest on government debt and reduce medium- and long-term government indebtedness levels.
*Translated by Gabriel Pomerancblum
