The Brazilian Public sector suffers record primary deficit in February

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During February, the consolidated public sector (Central Government, States, municipalities and state organisations, with the exception of Petrobras and Eletrobras) were in deficit of R$ 23.46 billion, according to the Central Bank.In January, there was a primary surplus of R$ 36.71 billion, and the same month of last year a deficit of R$23.04 billion.

The breakdown of the result of February is made up of a deficit of R$28.76 billion of the Central Government. On the other side, regional governments were in surplus of R$ 5.22 billion, while state enterprises were in surplus of R$ 46 million. In the 12 months until February, the consolidated public sector accounts have a primary deficit of R$ 147.419 billion – the equivalent of 2.23% of GDP.

Nominal deficit

The consolidated public sector registered a nominal deficit of R$ 54.24 billion in February. In January, the nominal result was positive at R$ 299 million, and in February 2016 was in deficit of R$ 52.82 billion. Last month, the central government had a nominal deficit of R$ 52.44 billion, while regional governments were in a deficit of R$ 1.4 billion. State companies were positive by R$ 378 million. In the 12-months up to last month, the nominal deficit corresponded to 8.49% of GDP with a negative balance of R$ 535.62 billion.

Interest charges

The consolidated public sector spent R$ 30.77 billion in interest in February after it reaching R$ 36.41 billion in January. The Central Government had expenses of R$ 23.67 billion in interest charges, regional governments R$ 6.67 billion and state enterprises R$ 425 million.

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