Primary deficit target moved up
The Brazilian government changed its deficit target for next year from USD 25 billion to USD 41 billion, ministers announced today.
Brasília – The Brazilian federal government raised its 2018 primary deficit target from BRL 79 billion (USD 25.2 billion) to BRL 129 billion (USD 41.2 billion) this Friday (7). A primary deficit means government expenditure outweighed revenue, not factoring in debt interest payments.
The target change was announced by ministers Henrique Meirelles, of Finance, and Dyogo Oliveira, of Planning, upon presenting the 2018 Budget Bill (Projeto de Lei de Diretrizes Orçamentárias - PLDO) at a press conference.
The BRL 79 billion target for 2018 was set in the 2017 PLDO which Congress approved last year. Meirelles stressed that the administration is committed to having a lower target in 2018 than it did in 2017. The target for the so-called Central Government (National Treasury, Social Security and Central Bank) this year is BRL 139 billion (USD 44.4 billion).
*Translated by Gabriel Pomerancblum