Brazilian Primary Surplus Reaches US$ 37 Billion in 2008

Brazil's public sector's economy, which includes federal government, states, cities and state-owned companies, to honor their financial engagements and payment of interest on their debts, the so-called primary surplus, reached 18.712 billion reais (US$ 11 billion) in April.

In the same period of last year, the primary surplus had been R$ 23.458 billion reais (US$ 14 billion).

According to the Central Bank, this year the primary surplus has already reached R$ 61.743 billion reais (US$ 37 billion). In the same quarter of last year, the result was 50.732 billion reais (US$ 30 billion).

In the month, the central government (federal government, Central Bank and Social Security) was the main contributor to the result, with 16.861 billion reais (US$ 10 billion).

Regional governments (states and cities) saved 2.459 billion reais (US$ 1.4 billion). State-owned companies presented a primary deficit of 608 million reais (US$ 365 million).

Up to April, the payment of interest reached R$ 54.858 billion reais (US$ 33 billion). In the same quarter of last year the payment of interest totaled 51.136 billion reais (US$ 31 billion).

In the month of April, interest paid by the consolidated public sector reached 14.879 billion reais (US$ 9 billion), against 12.238 billion reais (US$ 7 billion) registered in the same month last year.

The Central Bank of Brazil also informed that the public sector has returned to registering a nominal surplus (revenues minus expenses, including expenses with interest).

Figures disclosed by the organization show that in April the result was 3.842 billion reais (US$ 2 billion). In the accumulated result for the year, the nominal surplus was 6.885 billion reais (US$ 4 billion).

In the first quarter of last year, the public sector had registered a nominal deficit of 405 million reais (US$ 243 million). In April last year, the result was 11.173 billion reais (US$ 7 billion) in nominal surplus.

ABr