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26/07/2017 - 17:29hs

Central government deficit the worst ever

Weak revenue numbers were one of the reasons for the widest primary deficit on record for a first half in Brazil.

Brasília – Advance payments of judiciary bonds and weak revenue numbers caused Brazil’s Central Government (Nacional Treasury, Social Security and Central Bank) to post the widest deficit on record for a first half. The National Treasury reported a BRL 56.092 billion (USD 17.773 billion) deficit in H1, up from a BRL 36.477 billion (USD 11.557 billion) one in H1 2016.

The primary deficit concerns government finances with debt interest payments not factored in. In June alone, the Brazilian federal government saw a primary deficit of BRL 19.798 billion (USD 6.273 billion), which was also the poorest result since record-taking began in 1997.

According to the Treasury, the primary reason for the deterioration of government finances was BRL 20.3 billion (USD 6.4 billion) in judiciary bond payments in May and June, up from a BRL 2.2 billion (USD 697 million) deficit in May/June 2016.

*Translated by Gabriel Pomerancblum

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