In January 2023, Brazil’s central government, including the Treasury, Central Bank, and Social Security, achieved a primary surplus of R$78.3 ($15.66) billion.
Exceeding prior surplus and Ministry forecast: R$76.8 ($15.36) billion surpassed the R$55.3 ($11.06) billion forecast.
Marking a record since 1997, this performance, adjusted for inflation, signals a strong start to the new term.
The surplus stemmed mainly from a R$94.8 ($18.96) billion surplus from the Treasury and Central Bank, balanced against a R$16.5 ($3.3) billion deficit from Social Security.
It is fueled by a 2.4% revenue increase and a 6.0% expense rise, leading to a surplus of R$54.5 ($10.9) billion by January 2023.
Treasury Secretary Rogério Ceron saw this as just the start, tempering optimism with realism about the year’s fiscal challenges.
With early fiscal recovery actions by Finance Minister Fernando Haddad, Brazil aims to reduce its primary deficit significantly.
This target is about 1% of GDP, lower than the anticipated R$228 ($45.6) billion.
The revenue boost was driven by higher income tax, social security collections, and dividends.
On the expenditure side, increases were noted in social security benefits and other obligated spending.
This reflects Brazil’s commitment to fiscal responsibility and economic revitalization, signaling a cautiously positive outlook for 2023.
For further details, the Treasury’s transparency portal and the Ministry of Finance’s website offer in-depth information.