In October, Brazil’s federal tax revenue soared to a record R$ 205.48 billion ($42 billion), the highest figure for the month since 1995.
It shows a small real increase of 0.10% compared to October 2022. The Federal Revenue Service announced this on November 27, 2023.
Financial analysts had predicted higher revenues, between R$ 206.5 billion ($42.14 billion) and R$ 217.4 billion ($44.37 billion).
However, the actual figures fell short.
From January to October, the government’s total revenue was R$ 1.93 trillion ($393.88 billion), a decrease of 0.68% from the same period in 2022.
A notable factor in 2023’s revenue is the R$ 38.5 billion ($7.86 billion) drop in Corporate Income Tax and Social Contribution on Net Profits.
October’s revenue breakdown shows varying trends.
Revenues managed by the Federal Revenue Service totaled R$ 195.6 billion ($39.92 billion), a 0.71% real increase from October 2022.
Meanwhile, revenues from other agencies amounted to R$ 20 billion ($4.08 billion), a 0.52% real decrease.
This October’s outcome ended four consecutive months of decline.
Claudemir Malaquias, head of the Center for Tax and Customs Studies, attributes this to improved economic activity later in the year.
The month’s revenue varied across sectors. The wage mass grew by 6.99%, and goods trading increased by 2.9%.
However, industrial production dropped by 0.82%.
Service sales decreased by 1.2%, the value of electronic invoices fell by 5.63%, and the dollar value of imports decreased by 12.94%.
Regarding public accounts, the federal government initially projected a 2023 deficit of R$ 177.4 billion ($36.20 billion).
They now expect a smaller deficit of R$ 140.4 billion ($28.65 billion) due to budget under-execution.
This occurs when allocated funds remain unspent, improving the government’s financial results.
A return to deficit is anticipated after a surplus of R$ 54 billion ($11.02 billion) in 2022, the first in nine years.
Finance Minister Fernando Haddad links this to past policy decisions and legacies from previous administrations affecting public finances.
These factors are significant in shaping Brazil’s current fiscal scenario.
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