Government accounts record a deficit of R$114 billion for the year

Brazil’s public accounts recorded a primary surplus of 14.8 billion reais in October, compared to a surplus of 27.1 billion reais in October 2022. However, the year-to-date deficit is 114.2 billion reais, equivalent to 1.08% of GDP. By September, the debt was 0.97% of GDP.

Last month, the government’s economic sphere increased its forecast for this year, increasing from 141.4 billion reais to 177.4 billion reais, that is, from 1.3% to 1.7% of GDP.

The increase in the government account deficit shows the Lula government’s financial difficulties. At the start of the year, Finance Minister Fernando Haddad aimed to achieve a deficit of 100 billion reais in 2023 – something around 1% of gross domestic product (GDP). By 2024, the government’s goal under the new budget framework is to eliminate the current account deficit. . This goal has already been questioned by President Lula (PT) himself.

The primary surplus takes into account the excess of income over expenditure excluding interest on the national debt. In the case of a shortage, the logic is reversed.

Continues after commercial

Only in October did the central government record a surplus 19.5 billion reais, while regional and state governments ran deficits. There were 3.9 billion reais from governments and 805 million from state-owned companies.

Brazil’s gross debt reached 74.9% of gross domestic product (GDP) and closed October at 7.9 trillion reais, up 0.3 points from the previous month. The data were published on Wednesday, the 6th, by the Central Bank. For the year, the growth was 1.8 percentage points. Gross debt is calculated based on reports from the federal government, INSS, state and municipal governments.

Check Also

VICTORY! The government demands an INCREASE in the average salary in all national companies

Last Monday (11) Minister of Labor Luis Marinhoparticipated in the launch of National pact on …

Leave a Reply

Your email address will not be published. Required fields are marked *