The Brazilian consolidated public sector registered a primary surplus of BRL 35.399 billion in October, with the primary deficit falling to 0.24% of the Gross Domestic Product (GDP) in 12 months, the best percentage in almost seven years, according to data from the Bank Central this Tuesday (30).
The level was the lowest since November 2014, when the primary deficit in 12 months was 0.16% of GDP.
In October, the result of the public sector was guided mainly by data from the central government (federal government, Central Bank and INSS), with a surplus of R$ 29,042 billion.
The day before, the Treasury had already announced that the performance was helped by an increase in revenue with the strength of the collection, while expenses fell sharply compared to the same month last year.
States and municipalities were also in the blue in October, with a surplus of R$ 6.621 billion.
The state companies had a deficit of BRL 264 million in the month.
In the first ten months of the year, the consolidated public sector registered a surplus of BRL 49.570 billion, compared to a historical loss of BRL 632.973 billion in the same period last year, achieved amid extraordinary expenses that were made to fight the pandemic of Covid-19.
Both the Ministry of Economy and the Central Bank have called attention to the improvement in fiscal data. Inflation has contributed to the rise in revenue, but public authorities have said that there is also a structural component to this account, as revenue has been rising in real terms.
On the expenses side, the cap rule ended up promoting control over expenses even in the scenario of record revenues. In addition, the wage freeze with the civil service adopted as a counterpart to the states and municipalities for the injection of federal resources during the pandemic helped to significantly improve the cash flow of regional governments, being also important for the Union.
Also according to BC data, the country’s gross debt was 82.9% of GDP in October, the same level as in September.
The net debt fell to 57.6% of GDP, from 58.5% in the previous month.
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