• Categories
  • Archives

Brazil Gets Record Primary Surplus in March: Over US$ 6.2 Billion

Brazil’s non-financial government sector saved US$ 6.223 billion (13.186 billion reais) in March. This was US$ 135 million (286 million reais) more than the US$ 6.087 billion (R$ 12.899 billion) the government had to pay in debt interest last month.

According to the head of the Brazilian Central Bank’s Economic Department, Altamir Lopes, who presented the bank’s monthly report on Fiscal Policy, today, April 26, this was the best primary surplus (what the government saves to pay interest on the debt) for March since 1991, when the historical series began to be compiled.

He said that Brazil’s central government (which includes the Central Bank and the National Social Security Institute – INSS) managed to save US$ 2.649 billion (5.614 billion reais), while the states and municipalities racked up savings of US$ 980 million (2.077 billion reais), and State enterprises contributed US$ 2.593 billion (5.494 billion reais).

For the first quarter (January-March) as a whole, the primary surplus amounted to US$ 9.901 billion (20.981 billion reais), which corresponds to 4.39% of the Gross Domestic Product (GDP), the total of all wealth produced in the country.

This is less than the 6.32% achieved in the first quarter of 2005, but it is still higher than the 4.25% target the government set for this year, Lopes pointed out.

When the cumulative figures for the previous 12 months are considered, the primary surplus expanded from US$ 40.529 billion (85.881 billion reais) in February (4.37% of the GDP) to US$ 40.967 billion (86.809 billion reais) in March (4.39% of the GDP). According to Lopes, this upward trend should continue in the coming months.

He commented that this effort is imperative to ease the government’s need to obtain funds on the financial market, since its outlays so far this year to pay interest on the debt stand at US$ 20.847 billion (44.175 billion reais), more than double the primary surplus obtained in the first quarter; and that in the last 12 months debt interest payments have outstripped the primary surplus by US$ 36.149 billion (76.6 billion reais), which ties up 3.87% of the annual GDP.

Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Deforestation Is to Blame for Brazil Amazon’s Drought, Says Greenpeace

The serious, prolonged drought that is chastising the state of Amazonas is related to ...

Brazilians Hopeful Interest Rates Will Be Put on Hold

Brazil’s central bank today could interrupt an eight-month cycle of monetary policy tightening, according ...

The Brazil Risk and Brazil at Risk

In Brazil, crime has become a political party that runs not for elections, but ...

Brazil Wants to Know if Facebook and Google Are Involved in Spying the Country

The Brazilian government started an inquiry into whether telecommunications companies operating in Brazil cooperated ...

Without a Plan No President Can Rescue Brazil, Says Landless Leader

João Pedro Stédile is an economist and a national leader of Brazil’s Landless Workers ...

Indian Zamin Resources Builds in Brazil a Multi-Billion Iron Ore Project

According to a Dow Jones report, Indian-owned, UK-based Zamin Resources has one major iron ...

The Poet and the Moon

Ugly and diminutive, Catullo da Paixão Cearense was a giant of Brazilian music during ...

Brazil’s Oscar Niemeyer, 98, Still Busy at Drawing Board

It could be just one more university in the Arab world. As in various ...

After Moody’s and Standard & Poor’s, Fitch Also Gives Brazil Investment-Grade

Fitch Ratings has just boosted Brazil’s credit rating outlook from stable to positive citing ...

Rice and Meat Boost May Prices 0.79% in Brazil

Brazil's consumer prices rose 0.79% in May, the fastest pace in more than three ...