Brazil’s Federal Revenue Soars to Record Heights in August

In August, Brazil’s federal revenue hit a record R$ 201.6 billion ($37 billion), the highest for the month since 199. The Federal Revenue Service released the data on Thursday, September 19, 2024.

Compared to the same month last year, federal revenue rose by 11.95% in real terms, accounting for inflation. In August 2023, the government had collected R$ 180.1 billion in tax revenue.

The revenue from administered sources totaled R$ 195.1 billion in August, showing a real increase of 12.06% compared to the previous year. Revenue administered by other agencies amounted to R$ 6.5 billion, up 8.5% over the same period.

August saw the government collect R$ 3.6 billion in deferred taxes from Rio Grande do Sul due to flood-related calamities. These tax payments, postponed to the second half of the year, have been entering the Union’s accounts in August.

Social security revenue rose by 6.99% compared to August 2023, totaling R$ 51.1 billion. The Federal Revenue Service attributes this increase to economic performance and rising wage mass, which has grown by 7.9% in the year to July, according to IBGE.

From January to August, the cumulative federal revenue reached R$ 1.748 trillion ($320 billion) in inflation-adjusted values. This represents a 9.5% increase compared to the same period last year.

The growth in revenue bodes well for the government, which aims to eliminate the deficit in public accounts by 2024. The National Treasury recorded a primary deficit of R$ 233.3 billion in the 12 months to July.

Brazil’s Federal Revenue Soars to Record Heights in August

According to the Finance Ministry’s Prisma Fiscal report, economic agents expect a primary deficit of R$ 66.67 billion in 2024.

The Ministry of Planning and Budget has until Friday, September 20, to publish its Bimonthly Revenue and Expenditure Assessment Report.

In July, the government announced a freeze of R$ 15 billion on the 2024 Budget. This includes a R$ 11.2 billion block on discretionary expenses and a R$ 3.8 billion contingency to stay within the target deficit of R$ 28.8 billion.

As of July, the federal government estimated a deficit of R$ 32.6 billion in public accounts for 2024. The recent surge in revenue may help narrow this gap and bring the government closer to its fiscal goals.