The loss in public accounts was only smaller than in 2020, the year of the covid-19 pandemic; accounts worsened by R$257 billion
The consolidated public sector – made up of the Union, States, municipalities and state-owned companies – recorded, in 2023, the 2nd largest primary deficit in history in the accumulated period from January to November. The hole in public accounts was R$119.6 billion. The data was released this Friday (January 5, 2024) by B.C. (Central bank).
The negative result only did not surpass 2020, the first year of the covid-19 pandemic that pressured national and international governments to increase public spending to contain the effects of the health crisis.
The primary result is accounted for by the balance between revenues and expenses, excluding debt interest payments. The primary deficit means that there is more spending than revenue, which could increase Brazil's debt trajectory.
According to BC data, the consolidated public sector had, from January to November, a fiscal deficit of R$651.1 billion. The result was atypical. It recorded surpluses of R$64.6 billion in the same months of 2021 and R$137.8 billion in 2022. Last year, it again had a deficit from January to November.
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When comparing 2023 with 2022, the consolidated public sector worsened the conditions of public accounts by R$257.4 billion.
The hole in the public sector in 2023 was mainly caused by the accounts of the central government – made up of the federal government and the Central Bank. They had a deficit of R$137 billion from January to November. In other words, the smaller gap in the accounts of R$119.6 billion was made possible by the negative balance in the accounts of States, municipalities and state-owned companies.
Hover your cursor to view the values in the graph below:
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