The Brazilian consolidated public sector recorded a primary surplus of BRL 64.727 billion in 2021, equivalent to 0.75% of GDP (Gross Domestic Product), the first positive annual result in eight years, the Central Bank reported on Monday (31). ).
In December, the primary balance was positive by R$ 123 million. The expectation for the last month of the year, according to a Reuters survey, was a primary surplus of R$ 18.152 billion.
The values ​​include the results of the central government (federal government, Central Bank and INSS), states, municipalities and state-owned companies.
The fiscal improvement led the country’s gross debt to end the year at 80.3% of GDP — market expectations were 80.4%. In December 2020, this indicator stood at 88.6% of GDP.
Net debt, in turn, was 57.3% in December, against analysts’ projection of 57.4%. In the same month of the previous year, it was at 62.5%.
The jump in inflation in 2021 contributed to increasing government revenue gains because many taxes are calculated on the price of products, which have increased. The appreciation of the dollar and the barrel of oil also weighed favorably on revenues.
The government has been arguing, however, that a portion of the gains is structural, which has made collections grow well above inflation. Last Friday (28), the Minister of Economy, Paulo Guedes, said that the improvement in the fiscal situation occurred because of spending control, not because of the inflationary effect on revenues.
The freezing of civil servants’ salaries until the end of 2021 was one of the factors that counted positively for the accounts of the federal, state and municipal governments. States also benefited from gains in ICMS collection on fuel, with the increase in the prices of these inputs.
In the year, the result of the public sector was guided mainly by data from regional governments, surpluses of R$ 97.694 billion.
The central government was in the red in 2021, with a deficit of BRL 35.872 billion.
State-owned companies, on the other hand, had a surplus of R$ 2.906 billion in the year.
Source: Folha
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