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27/02/2018 - 17:42hs

Primary surplus the highest for a January

The Brazilian central government (National Treasury, Social Security and Central Bank) managed to save over USD 9.5 billion for paying interest on its debt.

Brasília – Improvements in federal collection, driven by economic recovery and taxpayer debt renegotiations, led Brazil’s Central Government (National Treasury, Social Security and Central Bank) to start the year with a record-high primary surplus. The Treasury reported this Tuesday (27) that savings intended for debt interest payments reached BRL 31.069 billion (USD 9.596 billion) in January, the best result on record for the month.

January usually sees a surplus due to payments of Income Tax and Social Contribution on Net Profit by corporate entities. However, January 2018 saw collection go up 67.8% from January 2017.

The surplus was due to revenue outgrowing expenditure. Tax collection outpaced inflation by 10.4%, while expenses climbed 1.6%. The Special Tax Renegotiations Program, aka Novo Refis, and increased oil royalties stemming from a hike in oil prices, also played a role in driving up revenue.

*Translated by Gabriel Pomerancblum

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