Central Government deficit down in August
The Central Government, which covers the accounts from the National Treasury, Social Security, and the Central Bank alone, registered a primary deficit of $1,244.33 billion. Despite the negative figure, the result represents half the $2,538.13 billion posted in August last year.
Among the reasons is the government's decision to put off the first installment of pensioners and retirees' Christmas bonus—called 13th salary in Brazil—which is usually paid late in August and early in September.
Year to date (January – August), the Central Government reported a deficit of $3,403.53 billion—the first negative figure for the period in this historic series, which started in 1997. According to the National Treasury, the main cause behind this outcome is the 4.8% drop in the government's 2015 net revenue. Net costs, in turn, fell 2.1%, a decline driven by a reduction in investments, which add up to $8,855.01 billion for the first eight months of the year—down 37.2% from the same period in 2014. Expenditures in the Growth Acceleration Plan (PAC) alone dropped 41% to $6,561.70 billion. Also reported to experience a slip (1.6%) were expenditures on civil servants.
Nonetheless, other costs are on the rise this year, such as subsidies and incentives, with a real increase of 196.1% which comes as a result of loans from the Social Development Bank (BNDES).
In July, difficulties in cutting spending and raising revenues led the economic staff to cut 2015's primary surplus target to 0.15% of the country's gross domestic product.
Translated by Fabrício Ferreira
Fonte: Central Government deficit down in August
