The National Treasury Secretariat reported this Tuesday (26) that The federal government’s accounts recorded a primary deficit of R$58.44 billion in February this year.
The primary deficit occurs when revenues from taxes and duties fall below government expenditures (expenses related to paying interest on public debt are not considered). If revenues exceed expenses, the result is a primary surplus.
According to the government, the deficit recorded in February is the largest for the month since the beginning of the historical series in 1997. Therefore, it is the worst result for that month in 28 years. The values were adjusted for inflation.
“It was an atypical month due to the payment of more than R$30 billion that were advanced in court orders (…) There is no more stock of court orders. In July, we will have a map to be paid in 2025. We have a balance of Fundef, in installments and not authorized payment by the STF. And requests of small value, which are being paid throughout the year'”, declared Rogério Ceron, secretary of the National Treasury.
Partial year and fiscal target
Also according to the National Treasury, in the first two months of this year, government accounts recorded a primary surplus of R$20.94 billion.
As a result, there was a worsening compared to the same period last year, when a fiscal surplus of R$38.29 billion was recorded in the government’s accounts.
- According to the rules of the fiscal framework, there is a band of 0.25 percentage points of GDP above and below the fiscal target.
- Therefore, the government can record a deficit of up to R$28.8 billion in 2024 without the objective being missed.
- In pursuit of the fiscal target, last year the government approved a series of measures to increase federal revenue. The objective is to increase revenue by R$168.5 billion in 2024.
Tags: Government accounts gap R58 .4 billion February worst result month years Economy
