Brazil posts record primary surplus of US$15 billion in January – best result since 1997

RIO DE JANEIRO, BRAZIL – Thanks to higher tax revenues in January, the central government accounts – Ministry of Finance, Social Security, and the Central Bank – have started 2022 with a record surplus. Last month’s result was a positive R$76.539 (US$15) billion.

This was the best result of any month since the historical series began in 1997. The second-best result was recorded in October 2016 (surplus of R$52.9 billion at current prices) and September 2010 (R$51.1 billion at current prices). However, in both cases, the surplus had been inflated by atypical revenues.

The primary surplus represents the saving of resources by the government, excluding the payment of interest on the public debt. The January result was better than expected by financial institutions.

According to the Fiscal Prism survey, which the Ministry of Economy publishes every month, market analysts had expected a positive result of R$44 billion last month.

In October 2016, there was the repatriation of funds held by Brazilians abroad. At that time, the government granted an amnesty to those who returned the money to the country without being guilty of currency evasion.

In 2010, the result was boosted by the capitalization of Petrobras during the process of the onerous cession of oil in the pre-salt layer.

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