Brazilian public accounts surplus falls 47% in first four months of the year

The Brazilian public sector accounts (central government, states and municipalities, and state-owned companies) recorded a primary surplus of US$78.7 billion (US$15.515 billion) in the first four months of the year, 47 percent less than in the first four months of last year, the Central Bank informed yesterday.

According to the issuing entity, the consolidated public sector result between January and April equals 2.31 percent of the country’s Gross Domestic Product (GDP).

The primary surplus occurs when tax revenues exceed expenditures without considering interest on public debt.

At the same time, consolidated public sector gross debt, an important indicator for investors to determine countries’ ability to pay, rose 0.2 percentage points in April to 73.2 percent of GDP.

In April, Brazil’s consolidated public sector accounts recorded a primary surplus of R$20.3 billion (US$4 billion), down from R$38.9 billion (US$7.67 billion) in the same month last year, representing the worst result for the month since 2020.

According to Central Bank data, the federal government recorded a surplus of R$16.9 billion (US$3.33 billion) in its accounts last month, states and municipalities a balance of R$4 billion (US$788 million), and state-owned companies, R$602 million (US$118 million).

If interest on public debt is considered, there was a deficit of R$25.4 billion (US$5 billion) in the public sector accounts in April. In the last 12 months to April, the result is a deficit of R$603.3 billion (US$118.925 billion), equivalent to 5.92 percent of GDP.

In April, public sector gross debt stood at R$7.45 trillion (US$1.46 trillion), equivalent to 73.2 percent of GDP.

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