Brazil’s April Surplus Falls Short, Deficit Projections Worsen for 2024
On Tuesday, Brazil’s National Treasury announced a primary surplus of R$11.1 billion ($2.14 billion) for Brazil’s central government in April.
This result, which encompasses the Treasury, Central Bank, and Social Security, fell short of the R$13.35 billion ($2.58 billion) surplus analysts had anticipated.
Comparatively, the surplus was R$15.6 billion ($3.01 billion) in the same month last year.
The economic team now projects a primary deficit of R$14.5 billion ($2.80 billion) for 2024.
This worsens from the R$9.3 billion ($1.79 billion) deficit projected in March but fits within the allowed margin.
Tax collections increased by 10.6% in April, adding R$14.5 billion ($2.80 billion) compared to April 2023.
This boost stemmed chiefly from higher PIS/Cofins taxes and Social Security contributions.
Significantly, last month’s financial outcome was also influenced by increased disbursements for Social Security benefits.
By the end of April, the year-to-date figures showed a cumulative surplus of R$30.605 billion ($5.91 billion).
This marked a decline from the R$46.849 billion ($9.05 billion) recorded in the first four months of 2023.
Over the past 12 months, the central government has registered a deficit of R$253.4 billion ($48.92 billion), adjusted for inflation.
This deficit, 2.23% of GDP, was significantly impacted by an extraordinary settlement of court-ordered debts at the end of 2023.
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