Gov't raises primary deficit target to $41.2 billion for 2018

Brazil's federal government raised the target for 2018's primary deficit from $25.2 billion to $41.2 billion this Friday (Apr. 7). The primary deficit is the negative balance in government accounts before the payment of interest in the public debt.

The announcement was made by Finance and Planning Ministers Henrique Meirelles and Dyogo Oliveira in an interview aimed at unveiling the new bill on the 2018 guidelines for  budget.

The primary deficit target of $25.2 billion in 2018 had been set in the guidelines for 2017, passed by Congress last year.

The government is committed to reducing the target from its 2017 value, Meirelles noted. For this year, the deficit goal for the central government—formed by the National Treasury, Social Security, and the Central Bank—stands at $44.4 billion.

To set the target for 2018, an estimated 0.5% economic growth in 2017 and 2.5% next year were taken into consideration, Meirelles reported. The government also predicts that the inflation, as measured by the National Broad Consumer Price Index  (IPCA) to stand at 4.3% this year and 4.5% in 2018.

Translated by Fabrício Ferreira