The Brazilian Public sector suffers record primary deficit in February


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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