Brazil’s 2024 Budget Deficit Nears R$100 Billion, Government Optimistic
The Brazilian government, under President Luiz Inácio Lula da Silva’s leadership, revealed a primary deficit of R$22.404 billion ($4.11 billion) in August 2024. This represented a 19.6% decrease compared to the same month the previous year. The year-to-date deficit reached R$99.383 billion ($18.24 billion), marking a 9.1% reduction from the same period in 2023.
Forecasts suggest a deficit of R$28.3 billion ($5.19 billion) for 2024, nearing the target goal of 0% of GDP. However, market agents hold more pessimistic views, expecting a deficit of 0.6% of GDP as per the Focus Bulletin.
The Ministry of Finance’s Prisma Fiscal report anticipates a primary deficit of R$66.67 billion in 2024. In September, the Ministry of Planning and Budget disbursed R$1.7 billion for the 2024 Budget after surpassing revenue estimates.
The total public sector deficit over 12 months amounted to R$1.11 trillion, with interest payments on debt comprising 76.9% of this amount.
Despite challenges, the government remains optimistic about managing the deficit efficiently in the coming months.