SAO PAULO (Reuters) -Brazil’s central government recorded a primary budget surplus of 17.8 billion reais ($3.1 billion) in April, Treasury data showed on Thursday, above the 15.9-billion-real surplus projected by economists polled by Reuters.
The figure represents an increase from the 11.6-billion-real surplus in the same period of last year, driven by higher tax collection, as well as a jump in revenues coming from dividends and the exploration of natural resources, specially oil.
Year-to-date, the central government primary surplus reached 72.4 billion reais, more than double the 31.8-billion-real surplus posted a year earlier.
The improvement has been helped by a favorable base effect, as the government chose to push a hefty bill for court-ordered payments to the second half of the year, whereas those payments were made in the first half in 2024.
In the 12-month period, the primary deficit stood at 5.3 billion reais, or 0.02% of gross domestic product (GDP).
Speaking at a press conference, Treasury Secretary Rogerio Ceron said the central government will probably post a 12-month primary surplus in May.
The government targets a zero primary deficit this year, with a tolerance margin of 0.25% of GDP, meaning it can record a deficit of up to 31 billion reais and still comply with fiscal rules.
($1 = 5.6574 reais)
(Reporting by Andre Romani in Sao Paulo and Marcela Ayres in Brasilia; Editing by Chris Reese and Kylie Madry)
Comments