Brazil’s Central Government reported a fiscal deficit of R$38.836 billion (US$6.87 billion) in June, showcasing ongoing economic challenges but an improvement from May. Analysts had predicted a slightly smaller deficit of R$37.7 billion (US$6.67 billion), encompassing activities from the National Treasury, Social Security, and Central Bank. Surpassing expectations, June’s results marked the weakest performance since 1997, with a deficit of R$68.698 billion (US$12.15 billion) year-to-date, contrasting starkly with last year. Despite this, June’s revenue rose by 8.2% compared to the previous year.
The government plans to achieve a primary fiscal balance in 2024, with the spending cap set at R$2.089 trillion (US$369.56 billion). The Ministry of Planning and Budget projects a year-end deficit of R$28.8 billion (US$5.09 billion), aligning with the 0.25% GDP target. The National Treasury and Central Bank managed a primary surplus in June, while Social Security recorded a significant deficit. Overall, the Central Bank also faced deficits, with ongoing efforts to balance expenses and revenue.
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