Govt widens 2017 primary deficit target to $47.72bn

The government widened the fiscal deficit target of the Central Government (National Treasury, Social Security, and Central Bank) to $49.72 for each of this and next year. This revision, which is now pending approval by Congress, like any other goals set forth in the budget directives (LDO), was announced by Finance Minister Henrique Meirelles and Planning Minister Dyogo Oliveira on Tuesday (Aug. 15).

At first, the fiscal deficit had been targeted at $43.47 billion for this year and $40.34 billion for 2018, but tax revenue continues to dwindle and lost revenues frustrated the goverment's hopes of meeting the original target.

The primary deficit, which excludes public debt interest payments, was reported to have reached $52.28 billion in the 12 months ending June, which accounts for 2.62% of the Gross Domestic Product (GDP).

*With additional reporting by Kelly Oliveira.

Translated by Mayra Borges