Brazil’s Primary Surplus Stays Below the 3.1% Target at 2.78% of GDP

    Brazilian industry

    Brazilian industryBrazil’s so-called consolidated public sector, that is, federal, state and municipal governments, had a primary surplus in 2010 equivalent to 2.78% of GDP, or 101,696,000,000 reais. That is below the government’s fiscal target of a consolidated public sector primary surplus equal to 3.1% of GDP.

    A primary surplus is achieved when government income is larger than outlays, without taking into consideration interest payments. The money is economized to pay the interest on the country’s debt. As interest payments on Brazil’s debt totaled 195,369,000,000 reais in 2010 (that is, 5.34% of GDP), there was a nominal deficit in the primary account of 93,673,000,000 reais (2.56% of GDP).

    However, the government was able to subtract spending in its Accelerated Growth Program (PAC) from the 3.1% of GDP target.

    According to the National Treasury, “extraordinary revenue” also made it possible for the government to close out the year so near its target. In December 2010, 6 billion reais in judicial deposits entered the Treasury. In September, a windfall of 31.9 billion reais from the Petrobras capitalization offering came in.

    As a result, the so-called central government primary surplus reached 2.15% of GDP (78.7 billion reais), which was right on the government’s target (the “central government” is only the National Treasury, Social Security system and Central Bank).

    The rest of the “consolidated public sector” primary surplus was made up by surpluses in state-run enterprises (surplus of 0.06% of GDP) and state and municipal governments (surplus of 0.56% of GDP).

    ABr

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Dilma in Mexico for G20 Summit

    Brazil President Uses G20 Summit in Mexico to Talk to Obama and Merkel on Rio +20 Issues

    Brazilian president Dilma Rousseff is in Los Cabos, Mexico, for the seventh G-20 summit ...

    Brazil’s Lula Vows to Keep on Diversifying International Relations

    In a meeting Wednesday, January 4, with Brazilian diplomats (among them more than 60 ...

    Brazil Wants to Sell More than Gems on the Rough

    Entrepreneurs from the southern Brazilian state of Rio Grande do Sul want to sell ...

    World’s Largest Cattle Fair, Expozebu, Starts Its 73rd Edition in Brazil

    The city of Uberaba, in the interior of the southeastern Brazilian state of Minas ...

    February 1994

    CONTENTS: Cover: The Generals are watching (p. 7) Betinho talks (p. 13) Saving the ...

    The Result in Sí£o Paulo : a Second Election

    Contrary to the opinion polls, the PSDB’s José Serra swept into the second round ...

    Brazil’s Tax Burden Is Preventing Industry from Investing More

    In April, entrepreneurs in the manufacturing sector were less optimistic about overall investments in ...

    Brazil Still Mum on Traffic Controller Error that Led to Boeing Crash

    The flight recorder transcript from the Long Island executive jet involved in Brazil’s worst ...

    Indians from Brazil Get Land They Had for 400 Years

    The homologation of Brazil’s Raposa Serra do Sol indigenous reserve last week legitimized the ...