Brazil’s primary budget surplus in January was 84.9 billion reais, below the expected 88.5 billion. While there was an increase from last year, spending growth surpassed revenue gains, leading to a primary deficit of 42.2 billion reais over 12 months. The government targets a balanced budget for the year.
In January, Brazil’s central government recorded a primary budget surplus that slightly missed market forecasts, as analyzed in the Treasury data released on Thursday. The surplus reached 84.9 billion reais ($14.6 billion), falling short of the anticipated 88.5 billion reais based on economist projections from Reuters.
Despite this shortfall, the surplus represented an enhancement compared to last year’s January surplus of 79.5 billion reais. The outcome was driven by a 3.7% real increase in net revenues while government expenditures grew at a higher rate of 4.4%.
Over the previous 12 months, the central government incurred a primary deficit of 42.2 billion reais, equating to 0.32% of the gross domestic product (GDP). The official fiscal target for the year aims for a balanced budget, allowing for a deficit tolerance of up to 31 billion reais, or 0.25% of GDP.
In summary, Brazil’s January primary budget surplus was a modest improvement compared to the previous year but fell short of expectations, highlighting the challenge of managing spending against revenue growth. The government aims to balance the budget with specific deficit allowances as they navigate fiscal responsibilities in the upcoming year.
Original Source: www.marketscreener.com
