Brazil's primary surplus reached R$ 6,1 billion in October.
This was the smallest primary surplus for the month of October recorded by the Central Bank in the historical series that began in December 2001.
Kelly Oliveira
Reporter from Agência Brasil
Brasilia – The primary surplus of the consolidated public sector – federal, state and municipal governments and state-owned companies – reached R$ 6,188 billion in October, the Central Bank (BC) reported today (29). This was the lowest primary surplus for the month of October recorded by the BC in the historical series that began in December 2001.
From January to October, the primary surplus was R$ 51,153 billion. In the 12 months ending in October, the primary surplus reached R$ 67,890 billion, representing 1,44% of everything the country produces – Gross Domestic Product (GDP).
The primary surplus is the savings made to pay the interest on the public debt. This fiscal effort allows for a reduction in government debt in the medium and long term.
In the month, the Central Government (Central Bank, National Treasury and Social Security) recorded a surplus of R$ 5,257 billion. State-owned companies, excluding the Petrobras and Eletrobras groups, contributed R$ 238 million. State and municipal governments presented a primary surplus of R$ 694 million.
The public sector's fiscal effort was insufficient to cover the interest expenses on the debt. These interest payments reached R$ 17,717 billion in October and R$ 194,923 billion in the first ten months of the year. In the 12 months ending in October, interest expenses reached R$ 230,356 billion, equivalent to 4,89% of GDP.
With these results, a nominal deficit was recorded, formed by the primary result and interest expenses, of R$ 11,528 billion last month, R$ 143,769 billion from January to October, and R$ 162,466 billion in 12 months (3,45% of GDP).
The Central Bank also reported that the net public sector debt reached R$ 1,655 trillion, which corresponds to 35,1% of GDP. In September, this ratio was 35% of GDP.
Another indicator released by the Central Bank is the gross debt of the general government (federal, state, and municipal governments). In the case of gross debt, which does not consider assets in foreign currency but only liabilities, the ratio to GDP is higher. In October, it stood at R$ 2,779 trillion, which corresponds to 59% of GDP, an increase of 0,2 percentage points compared to September.