Government accounts have worst February in 28 years

The federal government’s accounts recorded a primary deficit of 58.44 billion reais in February, the worst result for the month in 28 years.

According to the National Treasury Secretariat, the numbers were impacted by the payment of 30 billion reais in court orders, amounts that must be paid by the government after court decisions.

“It was an atypical month due to the payment of more than 30 billion reais that were advanced in court orders […] There is no longer any stock of court orders. In July, we will have a map to be paid in 2025. We have a Fundef balance, in installments and payment not authorized by the STF. And small value requests, which are paid throughout the year’said Rogério Ceron, Secretary of the National Treasury.

Income and expenses

The Treasury Secretariat reported that net revenue was 132.494 billion reais. Expenses totaled 190.938 billion reais.

The primary result for the 12-month period revealed a deficit of 252.9 billion reais, a value equivalent to 2.26% of Brazilian GDP.

Released last week, the revenue and expenditure assessment report predicts a primary deficit of 9.3 billion reais for 2023.

With the possibility of a deficit of 0.25%, the government’s fiscal target is for the deficit in 2024 to be up to 28.8 billion reais.

Central government accounts in 2023

Comprised of Social Security, the Central Bank and the National Treasury, the central government recorded, in February 2023, a primary deficit of 40.614 billion reais.

Compared to the same month last year, total revenue grew by 28.9 billion reais, around 18%. Net revenue rose 25.1 billion reais, equivalent to 23.4%.

Expenses, however, increased by 41.1 billion reais, around 27.4%.

In 2023, the federal government recorded a primary deficit of 230.5 billion reais.