Hydroelectric plant concessions ensured January primary surplus
Hydroelectric power plant
The funds raised from renewed hydroelectric power plant concessions allowed the Central Government—formed in Brazil by the National Treasury, the Social Security and the Central Bank—to report its first primary surplus in nine months. In January, the Central Government saved $3.7 billion, the fourth best fiscal effort registered for the month.
Figures were published today (Feb. 25) by the National Treasury. In the 12-month period ending in January, the Central Government reports a primary deficit of $28 million, the lowest performance for the period since the beginning of this historic series, in 1997.
The primary surplus is the amount spared to pay the interest in the public debt. In the medium run, the fiscal effort helps curb the debt and keep the federal government capable of fulfilling its commitments.
The most significant contributing factor to the positive balance in January was the payment of the $2.8 billion installment in the auction for hydroelectric power plant concessions held last November. These funds had originally been expected in the government's coffers in 2015, but the National Congress took longer to approve the renewal of concession contracts.
Compensation
The resources from the hydroelectric plants compensated for the 4.8% reduction (inflation considered) in tax collection. Altogether, government net revenues surged 6.3% above the inflation in January 2016 compared to January 2015. Costs rose 3.8% in the same comparison.
The growth in expenditures was driven by mandatory expenses, such as the Christmas bonus and the unemployment insurance, which faced an increase of 27% above the inflation.
Translated by Fabrício Ferreira
Fonte: Hydroelectric plant concessions ensured January primary surplus
