Primary deficit hits $4.24 billion in August

The consolidated accounts of the Brazilian government registered a primary deficit of $4.24 billion, the worst performance since 1997, according to a report released by the National Treasury on Tuesday (Sep 30).

This deficit—which corresponds to the impact made by monthly expenses, obverved to surpass the revenues—made the government unable to pay all of the public debt interest, due to lack of savings.

In the same month last year, the deficit was considerably lower: $900 million. In the year's accumulated rate up to August, the figure is $13.75 billion below the result observed in the same period in 2013.

The fiscal target set by the economic staff for the year's second 4-month period is $16 billion, but the outcome achieved, according to the National Treasury, was nowhere near it: $1.26 billion, 7.8% of the expected.

The total revenue was minus $530 thousand, on account of, among other reasons, seasonal factors in the collection of a number of taxes.

The government has also transferred to states and municipalities the total amount of $860 million as stipulated by the Federal Constitution and $780 million as compensation for oil and gas exploration. Another $1.06 billion was paid, $780 million of which earmarked for social security benefits.

Translated by Fabrício Ferreira