Central government has a surplus of BRL 14.4 billion in June, a record for the month

The central government, which comprises the National Treasury, the Central Bank and Social Security, recorded a primary surplus of R$14.433 billion in June, the Treasury announced on Thursday (28), a record for the month in nominal terms.

From January to June, there was a surplus in public accounts of BRL 53.614 billion, against a deficit of BRL 53.568 billion in the same period in 2021.

In 12 months, the primary surplus is R$75.1 billion, equivalent to 0.93% of GDP (Gross Domestic Product).

Central government net revenues, which exclude transfers to states and municipalities, rose 53.9% in real terms in June against the same month of 2021, to R$190.567 billion, while total expenditures fell by 14.5%, BRL 176.134 billion.

Total revenues registered a real increase of 16.3% in the year, highlighting the 55.2% increase in non-administered revenues, strongly concentrated in the collection of concessions, dividends and oil royalties, which have risen in the face of the commodity surge amid supply restrictions brought on by the war in Ukraine.

Expenses, on the other hand, rose 1.2% in the year, pulled down by a drop in extraordinary expenses with the fight against the pandemic and expenses with precatories.

Last week, the Ministry of Economy revised its forecast for the central government’s primary result at the end of 2022, improving the deficit estimate of R$65.5 billion to a deficit of R$59.4 billion.

Despite the still negative number, the economic team is counting on new extraordinary collection gains and an improvement in projections in the coming months, reaching the end of this year with a primary result close to zero. For this, however, the government asked state-owned companies to increase dividend payments to the Treasury.