Public sector runs primary deficit of $2.8 billion
The consolidated public accounts—which covers both the government at federal, state, and municipal level, and state-controlled companies—posted a primary deficit of $2.812 billion in July, according to data from the Central Bank (BC), released Friday (Aug. 28). It is the worst performance registered for the month in the historic series initiated in December, 2001. In July, 2014, the primary deficit stood at $1.326 billion.
For the seven first months of 2015, the public sector accumulates a primary surplus of $1,745 billion. As for the 12-month period ending in July, the surplus amounts to $14.34 billion, which represents 0.85% of the country's gross domestic product (GDP).
The primary surplus, which does not include the payment of interest on the public debt, helps curb government indebtedness in both long and short terms. However, difficulties in slashing public spending led the economic staff to reduce the target for the primary surplus in 2015 to $2.72 billion—0.15% of the GDP.
In July, expenses with the interest on the public debt totaled $17.659 billion, and accumulate a nominal deficit of $79.431 billion for January-July.
The net debt in the public sector reached $548 billion in July—34.2% of the GDP, down 0.4 percentage points from June. The gross debt, in turn, reached $1.03 trillion—64.6% of the GDP, up 1.4 percentage points from June.
Translated by Fabrício Ferreira
Fonte: Public sector runs primary deficit of $2.8 billion
