In May 2024, Brazil faced its highest primary deficit since June 2021, reaching R$ 280.2 billion ($51 billion). Despite this, the government saw record revenue collection of R$203 billion ($36.8 billion), the highest May revenue since 1995. Finance Minister Fernando Haddad attributed part of the fiscal imbalance to past government policies, calling the 2022 surpluses deceptive and hinting at criminal implications.
The consolidated public sector reported a primary deficit of R$1.062 trillion ($192.4 billion) for the year ending in May 2024, the largest since records began in 2002. President Luiz Inácio Lula da Silva’s term saw the nominal deficit, including interest payments, hit R$1.061 trillion ($192.2 billion), equaling 9.57% of Brazil’s GDP.
Challenges and Context
These figures underline Brazil’s fiscal struggles despite revenue growth, emphasizing the impact of high interest rates on debt and expenditures. Effective fiscal policies balancing responsibility and growth are essential, requiring careful planning and informed decision-making in managing public finances.