Brazil’s public sector achieved a dramatic fiscal turnaround in March, recording a primary surplus of R$1.177 billion ($0.23 billion).
This came after February’s steep deficit of R$48.692 billion ($9.55 billion). According to the Central Bank, March’s results mark the best fiscal performance since 2022.
The primary surplus reflects the difference between government revenue and spending before considering interest payments on public debt.
In addition to this significant improvement, the March surplus exceeded market expectations, which anticipated a R$1.7 billion ($0.33 billion) deficit.
Analysts had forecasted a broad range, from a deficit of R$11.3 billion ($2.22 billion) to a surplus of R$3.9 billion ($0.76 billion).
The fiscal results reflected a central government deficit of R$1.898 billion ($0.37 billion), while regional governments contributed positively with a surplus of R$3.418 billion ($0.67 billion).
The states led the regional gains with a surplus of R$5.354 billion ($1.05 billion), while municipalities showed a deficit of R$1.936 billion ($0.38 billion).
State-owned companies recorded a deficit of R$343 million ($0.07 billion).
In the first quarter of 2024, Brazil’s consolidated public sector achieved a primary surplus of R$54.63 billion ($10.71 billion), equivalent to 1.98% of GDP.
The 2023 deficit stood at R$249.124 billion ($48.85 billion).
Brazil Marks Fiscal Success with March Surplus Turnaround
The central government contributed a surplus of R$21.564 billion ($4.23 billion), while regional governments added R$34.578 billion ($6.78 billion).
States held a surplus of R$32.576 billion ($6.39 billion), and municipalities managed R$2.002 billion ($0.39 billion).
State-owned companies incurred a deficit of R$1.511 billion ($0.3 billion).
Over the last 12 months, the consolidated public sector reported a primary deficit of R$252.869 billion ($49.58 billion), equivalent to 2.29% of GDP.
The central government registered a deficit of R$273.424 billion ($53.61 billion), while regional governments contributed a surplus of R$23.263 billion ($4.56 billion).