Brazil’s Primary Account Surplus Well Above IMF Target

According to Brazil’s secretary of the National Treasury, Joaquim Levy, the increase in Brazilian primary account surplus target (from 4.25% of GDP to 4.50%) will improve the economic climate, especially for private investors.

“That is what makes the difference. The fact is that most investment comes from the private sector,” said Levy, and those investments are supporting present economic growth, he added.

Levy cited data showing that federal government investments in August reached US$ 1.5 billion (4.5 billion reais) and could reach US$ 1.73 billion (5 billion reais) in September.


“When you include state and municipal investments, the total tends to triple,” he declared.

In the latest figures on the central government’s primary account (which does not include interest payments) for the month of August, the National Treasury had a surplus of US$ 2.2 billion (6.4 billion reais), but the Social Security system had a deficit of US$ 902 million (2.6 billion reais) and the Central Bank also had a deficit – US$ 10.2 million (29.5 million reais), for a final total surplus of US$ 1.31 billion (3.8 billion reais).


For the year, the primary account surplus is now US$ 14.4 billion (41.7 billion reais), well above the US$ 11.4 billion (33.1 billion reais) target in the IMF agreement.

However, the figures do not include state-run enterprises which Levy says should eventually come up with a primary surplus of their own of US$4 billion (R$11.7 billion) so the government can close out the year with a final primary surplus of US$24.8 billion (R$71.5 billion). Levy says that up to August the state-run enterprise sector primary surplus was US$1.73 billion (R$5 billion). “There is no reason not to expect strong performance in this sector,” concluded Levy.

Agência Brasil
Reporter:Lana Cristina
Translator: Allen Bennett

Tags:

You May Also Like

Tobacco Growers in Brazil Can’t Do Anything Else

Tobacco is the chief crop in Santa Cruz do Sul, 167 kilometers from Porto ...

Brazil to Reward Exporters with Tax Breaks

The Brazilian Ministry of Development, Industry and Foreign Trade is working on a project ...

Argentina’s President Elect Tells Brazilians: ‘We Want Results’

Stating that it had been a most "fruitful and successful" meeting, but not revealing ...

Lula’s Cancer Discovered by Chance After His Wife Complained of a Headache She Was Having

Brazil’s former president Luiz Inácio Lula da Silva was diagnosed with throat cancer this ...

Bush to Brazil’s Lula: You’re Looking Good, You’re Looking Good

The following is a transcript of remarks by President Bush and President Lula of ...

Lula Offers Brazil Expertise to Uruguay

Brazil wants to help the new Uruguayan government in the formulation of a development ...

Social Issues Are Not Priority in Brazil, Says Brazilian Group

After accompanying accusations of human rights violations for two years in 15 Brazilian states ...

Brazil Passes US$ 256 Billion Budget

Brazil’s National Congress approved December 29 the 2005 Federal Budget, which sets aside resources ...

Brazil: Lessons for Living

At the Maanaim Center, in São Paulo, children are expected to maintain personal and ...

Brazil’s CVRD to Explore Coal in Africa

Brazil’s Companhia Vale do Rio Doce (CVRD) informs that it was declared the winner ...