09/05/2024 – 14:26
BRASILIA (Reuters) – The central government posted a primary deficit of 9.283 billion reais ($1.9 billion) in July, better than the negative balance of 35.921 billion reais seen in the same month last year, but with the accumulated deficit for the year still far from the zero deficit target, the National Treasury said on Thursday.
The result, which includes the Treasury, Central Bank and Social Security accounts, came in last month worse than the negative balance of 8.8 billion reais projected by analysts in a Reuters survey.
Treasury data shows that there was a 9.5% increase above inflation in net revenue — which excludes transfers to regional governments — compared to the same month in 2023, reaching 183.544 billion reais.
The collection of taxes administered by the Federal Revenue Service was highlighted, driven mainly by the collection of Income Tax, Tax on Industrialized Products (IPI) and Social Contribution on Net Income (CSLL).
On the expenditure side, there was a real decline of 6.0%, to 192.828 billion reais. In this account, falls were observed in spending on social security benefits, financial support to regional governments and subsidies.
In the first seven months of the year, the central government accumulated a primary deficit of R$77.858 billion. In 12 months, the central government accounts have accumulated a deficit of R$233.3 billion, equivalent to 2.04% of GDP.
The accumulated data remains far from the zero primary deficit target set by the government for 2024, which has a tolerance band of 0.25 percentage points of GDP, equivalent to around 29 billion reais.
The figures for July, normally released in the last week of August, were presented late due to the mobilization of Treasury employees in search of better salary conditions.
(By Bernardo Caram)
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