Brazil may close out 2022 with primary surplus
For the first time in nine years, Brazil may end the year with a primary surplus, secretary of the National Treasury Paulo Valle said on Tuesday (Aug. 30). The result of the accounts of the Central Government - which encompasses the National Treasury, social security, and the Central Bank - in July registered the highest primary surplus for the month since 1995, when such data began to be recorded.
The primary surplus was introduced at the end of the 1990s and represents the saving of resources without including the interest on the public debt. Each year, the Budgetary Guidelines Law (LDO) sets a primary surplus or deficit target that must be met by the federal and local governments, and state-owned companies.
According to the results released on Tuesday (30), the Central Government recorded a primary surplus of BRL 73.088 billion in the first 7 months of the year. In the last 12 months, the positive result reached BRL 115.6 billion. In August this figure - considering the last 12 months - should fall to BRL 90 billion due to the payment of securities that had been postponed, but there is a chance that the account will end the year with a surplus, despite the increase in social spending planned for the second half, the Secretary of the National Treasury explained.
