Brazil Denies That It Saved Too Much to Guarantee Surplus

Brazil’s secretary of the National Treasury, Joaquim Levy, declared that the Brazilian government did not go overboard in economizing funds to guarantee a primary surplus.

According to Levy, "the savings were marginally higher," affording greater tranquility to the government’s accounts.

The Central Government, which comprises the National Treasury, the Central Bank, and the Social Security system, managed to amass a surplus of US$ 23.450 billion (52.488 billion reais) in 2005.

The savings are equivalent to 2.72% of the Gross Domestic Product (GDP), the sum of all wealth produced in the country. The surplus was US$ 2.743 billion (6.14 billion reais) greater than the target set for the year.

This is a preliminary result, since it does not include the accounts of the states, municipalities, and federal government enterprises.

According to the secretary’s forecast, the consolidated surplus, which will be announced on Monday, January 30, will also surpass last year’s target of 4.25% of the GDP.

"The signs point to the states’ having exceeded the target," Levy commented, noting that part of the federal tax revenue surplus is transferred to the states.

Agência Brasil

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